Gangneng Investment Co., Ltd. (Gangneng) and Hanhai Energy Co., Ltd. (Hanhai) recently signed an agreement to establish a joint venture, with a registered capital of RMB200 million. Gangneng is an indirect wholly-owned subsidiary of China LNG Group, while Hanhai is a wholly-owned subsidiary of CNOOC Gas & Power Group. Hanhai and Gangneng agreed with conditions to initially invest RMB98 million and RMB102 million, respectively.

The new company is to combine advantages of both parties to establish a LNG supply chain in China. Further, the two parties intend to build marketing channels, reduce intermediate links, improve distribution efficiency and reduce operating costs. Traditional “supply, storage, transport and sales” model will be changed. A multimodal transport logistics system on the basis of LNG tank containers will be established quickly to guarantee the stable supply.