Shenzhen Gas Group

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Under a deal singed in July of 2003, Hong Kong & China Gas (a.k.a Towngas) paid around 900 million yuan (US$ 108.7 million) to take a 30 percent share in the Shenzhen Gas Group -- the dominant natural gas supplier in the city. New Hope Group, which was controlled by mainland tycoon Liu Yonghao, bought 10 percent of the shares at a price of 125 million yuan (US$15 million). The Shenzhen Investment Management Co, which represents the government to manage State-owned assets, held the controlling 60 percent. The operating period of the JV is 50 years. The US$60 million deal was part of the Shenzhen government's reform plan to reduce its influence over state utilities. Hong Kong & China Gas was the privately owned sole provider of piped gas in Hong Kong. Shenzhen Gas was among the first batch of unlisted state-owned enterprises that overseas investors were allowed to buy into through international tender. Shenzhen Gas was the only piped gas supplier with exclusive gas supply rights in Shenzhen and had over 400,000 residential customers and a pipeline network of more than 900 kilometers. None None