Changzhou Hong Kong and China Gas Company Limited

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In December of 2002, the Hong Kong and China Gas Company (Towngas) signed a 50-year agreement with the state-owned Changzhou Gas Thermal Group (CGTG) to establish a 50:50 joint venture in the city of Changzhou, in Jiangsu Province. The joint venture, with investment from Towngas totaling US$30 million, was scheduled to supply natural gas by 2004 when the West-East Gas Pipeline project was expected to reach the city, at which time natural gas was to replace coal gas in Changzhou. Towngas said the company would pay for its stake with cash, while its partner, CGTG, would obtain its shares through its existing pipeline network. CGTG supplied 100,000 users among Changzhou's total population of 3.4 million in 2002. The natural gas JV was meant to supply household users along with the industrial districts. Towngas had already established eight JVs in Mainland China, and Changzhou was to be the ninth.