Huangshan City Pipeline Gas Project

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In May 2008, Towngas was granted a 30 year agreement to build and operate pipeline gas facilities in Huangshan City, Anhui Province through competitive bidding. Towngas owns 100% of the project. The facilities have a capacity of 30 million cubic meters per year. The total investment for phase I was RMB 70 million (US$ 10.01 million). Towngas group held a 100% equity interest in the project company, which had a registered capital of RMB 40 million. The project owns the exclusive rights for 30 years to supply piped gas to the Tunxi district, including the Huangshan Economic Development Zone, in the city of Huangshan. Huangshan was a world class tourist city with a well-developed hotel and catering industry. Inaugurated in 2009, the project company expected to serve around 20,000 residential customers with a total annual gas consumption of approximately 30 million cubic metres by 2015. According to http://anhui.mofcom.gov.cn/aarticle/sjdixiansw/200906/20090606347312.html (June 2009), the project is progressing well, however, exact financial closing date is unknown.