CPPGI Signed Deal with Zhuhai Gas to Launch the Zhuhai Natural Gas Utilization Project

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Researched by Industrial Info Resources (Sugar Land, Texas). The signing ceremony for the Cooperation Agreement on the Zhuhai Gas Pipeline Project between China Petroleum Pipeline & Gas Investment Company, Limited (CPPGI) (Hebei, China) and Zhuhai Gas Group Company, Limited (Zhuhai Gas) (Guangdong, China) was held on July 18, 2007. This establishes that the natural gas utilization project of Zhuhai city is officially launched.

In November 2005, Zhuhai Construction Bureau signed the Franchise Contract on the Zhuhai Urban Pipeline Gas with Zhuhai Gas, which authorized Zhuhai Gas to be solely responsible for the construction, operation and management of Zhuhai Urban Pipeline gas. In early December 2006, China Petroleum Pipeline Bureau signed the Framework Agreement on Zhuhai Gas Pipeline Project with Zhuhai Gas to acquire the franchise through a share transfer.

CPPGI is a professional subsidiary company of China National Petroleum Corporation (CNPC) (Beijing, China) specially engaged on the development, investment, operation and management of urban fuel gas in China. According to the agreement, CPPGI will take over control on Zhuhai Pipeline Gas Company, Limited, a subsidiary company of Zhuhai Gas, through share procurement, and hence to gain the franchise rights for the operation of pipeline gas in Zhuhai city.

Upon the acquisition of the franchise, CPPGI will accelerate the construction of the urban pipeline network strictly according to the overall planning of pipeline gas issued by the government of Zhuhai City. It is expected that natural gas can be delivered to households in Zhuhai City as early as November this year.

CNPC currently owns more than 70% of the natural gas production output in China, and has established a natural gas pipeline network covering North China, Central China, East China and Northwest China with the West-East Pipeline, Zhongxian-Wuhan Pipeline, No. 1 & No. 2 Shanxi-Beijing Pipeline as its backbone. CNPC plans to start a natural gas supply to Guangdong by using the second West-East Natural Gas Pipeline in 2008.

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