The new supply agreement between CNPC Changqing Oil Field Branch (CNPC Changqing) and Jingbian LNG, a subsidiary of China Natural Gas, will provide the company with a supply of natural gas for its LNG plant in Jingbian County of the Shaanxi Province.
China Natural Gas expects to complete Phase I of the LNG project by the end of this year.
Under the terms of the agreement, the company has the option to purchase up to 500,000 cubic meters of natural gas per day, or 150 million cubic meters per year of natural gas from CNPC Changqing at a purchase price of RMB1.355 per cubic meter.
China Natural Gas transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial, and residential customers through its distribution networks in China’s Shaanxi and Henan provinces.
