Chengdu City Gas Company

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In March 2005, Panriver Investment, a subsidiary of Hong Kong based Panva Gas Holding Ltd, acquired 13% stake in Chengdu Gas Company for US$20.58 million (RMB 170.35 million) from Chengdu municipal government. The other shareholders of Chengdu Gas Company were the company’s employees (10%), state-owned China resources petrochem (36%), and the local government through Chengdu City Development and Investment Corporation (41%). In 2005, Chengdu Gas Company was granted the rights to provide and operate the city gas pipeline network for a 30 year period. Chengdu city was the capital of Sichuan province and had an area of 12,399 squared kilometers with an estimated population of 11 million. Of them 2.89 million were expected to be connected customers. Hong Kong based Panva Gas Holding Ltd was a publicly traded company in the Hong Kong stock exchange and was principally focused on commercialization of natural gas and liquefied petroleum in China mainland.