Guoxin Group to Invest $377 Million in Phase I of 1,560-Megawatt Combine-Cycle Gas Power Plant in Huai'an

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Researched by Industrial Info Resources (Sugar Land, Texas)--With carte blanche from Jiangsu Guoxin Investment Group Limited (Guoxin Group) (Nanjing, China), the preparation office for Huai'an Gas Power Plant was established under the organization of Jiangsu Huaiyin Electricity Company Limited (Huaiyin Electricity) (Huai'an, Jiangsu), a state-owned heat and power enterprise affiliated with Guoxin Group. The preparation office will be fully responsible for the pre-stage preparation of the Huai'an Gas Power Plant.

Guoxin Group plans to invest in the Huai'an Gas Power Plant project, which includes the construction of four 390-megawatt (MW) combine-cycle gas turbine generating units in two phases. Two 390-MW units will be built in Phase I, a total investment of $377 million. The plant is located in the Chuzhou district of Huai'an city in eastern China's Jiangsu province.

The project is planned in response to the nation's policy of "developing natural gas power generation adequately." On August 1, 2007, Guoxin Group signed a letter of intent for the investment of the combined-cycle power project in Huai'an with the Government of Huai'an City. In May, a delegation led by Liu Yongzhong, party secretary of Huai'an City, visited Guoxin Group in Nanjing. Both sides decided to accelerate the construction of the combined-cycle power project. An 80-hectare plot has been allocated in the Chuzhou District of Huai'an city for the construction of the project. Guoxin Group also completed the pre-feasibility study. Presently, Guoxin Group is discussing the gas-supply agreement for the project with PetroChina Company Limited (NYSE:PTR) (Beijing).

On May 22, Guoxin Group decided to hand over the pre-stage preparation work to Huaiyin Electricity to complete related support documents for the project, including the application report, preliminary design, environmental impact and safety assessment, and to make preparations to start the project as soon as possible.

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