Recently the Guangzhou Gas Company and Guangzhou Development Industry (Holdings) Co., Ltd. jointly agreed to fund the Guangzhou Development Gas Co., Ltd., one of the major tasks of the joint venture the investment and development of the Zhuhai LNG Project.

The Zhuhai LNG Project will be another large energy project providing Guangzhou with LNG, following in the concept of the Shenzhen Dapeng LNG Project.

According to market research and the gas estimates for the users under the replacement plan, the demand for natural gas in Guangzhou will amount to 2.26 million tons a year by 2015. However, the current natural gas input volume is still lacks 1.5million tons a year, and the situation is not optimistic.

As a result, the Guangzhou Gas Company set up a specialized working group to actively pursue Phase II gas sources. After numerous efforts, the Guangzhou Gas Company successfully gained entry into the Guangzhou's Purchase and Sale intent agreement with Zhuhai LNG Project Office. As a result it plans to sign a minimum 20 year purchase and sale intent agreement with the Zhuhai LNG Project Office.

According to the intent agreement, the LNG volume purchased from Zhuhai by Guangzhou will increase gradually from 300,000 tons in 2011 to one million tons after completion of the project and putting it into production in 2015.

Editor: Yan