China-based company Guangdong Kaihong Technology will purchase the Xinneng Mining Industry from ENN Natural Gas and will repay the coal mining business’ debts worth CNY3.83bn, owed to ENN Natural Gas and its subsidiaries
ENN Natural Gas to sell Xinneng Mining Industry. (Credit: Анатолий Стафичук from Pixabay)
China-based natural gas distributor ENN Natural Gas has agreed to divest its entire stake in its coal mining business, Xinneng Mining Industry, for a total consideration of CNY6.67bn ($915m).
The company is selling the business to Guangdong Kaihong Technology.
In relation to the transaction, Guangdong Kaihong Technology will repay Xinneng’s debts worth CNY3.83bn, owed to ENN Natural Gas and its subsidiaries.
The proposed transaction represents the ENN Natural Gas’ efforts to enhance its focus on natural gas and optimise its asset structure.
Xinneng holds the mining rights for a coal mine in the northern Chinese region of Inner Mongolia, with an eight million tonnes per annum (mtpa) capacity.
ENN Natural Gas, one of the largest private energy companies in China, operates in more than 250 city gas projects across the country.
With an annual LNG distribution capacity of more than 10bcm, the company runs the first large-scale private LNG terminal in China, the Zhoushan LNG Terminal.
The company’s business model covers the entire natural gas value chain, including distribution, trading, storage and transportation, production and engineering.
It has created an intelligent operation platform for the natural gas industry, dubbed GreatGas.cn, based on the practices in the field.
The GreatGas.cn platform is said to advance the aggregation of demand, resources, reserves, and delivery ecology of the natural gas industry, said ENN Natural Gas.