The 50-50 joint venture, Caofeidian Evergrowth Energy, will have a registered capital of the CNY200m ($32.6m), which will be funded equally by Changfeng and CFD Group.
Under the joint venture agreement, both parties will work with a third party in order to establish and operate an energy resource exchange in northern China.
Changfeng expects to fund its CNY20m ($3.2m) portion for the registered capital from its internal cash flows.
Caofeidian Industrial Zone is located in the center of the south coast area of Tangshan city, Bohai Bay, Heibei Province.
Changfeng Energy is a natural gas service provider for industrial, commercial and residential customers.
Till date, the company has developed a natural gas pipeline network as well as urban gas delivery networks, stations, substations and gas pressure regulating stations in Sanya City and Haitang Bay.
