China Oil Gangran Energy Group announces two strategic agreements
China Oil Gangran Energy Group Holdings Limited, together with its subsidiaries, has received shareholder approval to be renamed Century Energy International Holdings Limited, and announced two strategic cooperation agreements in relation to business development and financing arrangements.
On October 10, 2021, the group entered into a non-legally binding strategic cooperation framework agreement with Yantai Yindu Industry Co, Ltd, which will result in the acquisition of a 51 percent equity interest in Shandong Pan-Asia.
Through this agreement, the group will be able to invest in Yantai Xigang liquefied natural gas (LNG) receiving terminal and gas pipelines projects.
Subsequently on October 11, 2021, the group entered into a non-legally binding strategic cooperation agreement with Beijing Qinglu Zhongbing Asset Management Co Ltd, under which the two parties may establish funds or joint venture companies to provide funding, if needed, to support the group’s future business development needs.
The framework agreement for the Yantai Xigang LNG project is the first major project the group has pursued in the field of energy and environment following its appointment of a new management team comprising industry heavyweights, marking an important step on the path of business transformation.
According to the framework agreement, the group proposes to acquire from Yantai Yindu a 51 percent equity interest in Shandong Pan-Asia, through which the group will invest in the Yantai Xigang LNG receiving terminal and the LNG gas pipelines projects, as well as obtaining the access rights and operation and management rights of both projects.
After the completion of the acquisition, the group plans to develop and operate LNG import and trading business domestically and internationally where appropriate, and downstream sales and marketing of LNG in China through Shandong Pan-Asia or its subsidiaries.
In order to broaden the channels of financing and further reduce financing costs, the group has entered into a cooperation agreement with Beijing Qinglu Zhongbing, under which the two parties may establish funds or joint venture companies to source funding in support of the business development and investment projects of the group.
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13th October 2021