Taizhou Hong Kong and China Gas Company Limited

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This joint venture, Taizhou Hong Kong and China Gas Company Limited, is between the Hong Kong and China Gas Company Limited (Towngas) and the Taizhou City Gas Company. Towngas will hold a major equity position in the project, located in Taizhou, Jiangsu Province, which would cover a total investment of $24.2m (RMB 200 million) and a registered capital of RMB 83million. The joint venture agreement was signed on June 7, 2002 and was fully established by end of 2002. The JV will take over the Taizhou City Gas Company's existing natural gas plant and 80 kilometers of pipelines. It also gained the rights to manage the operation, as well as the exclusive rights to supply natural gas to the city for the next 50 years. Natural gas for the operation will be supplied through a branch of the West-to-East transmission pipeline and is scheduled to arrive in Taizhou by end of 2004.