LJNGL has been granted a 30 year concession to build and operate a spur pipeline that will deliver natural gas to the ceramics industrial park in Jianping County, Liaoning Province.
The branch pipeline is anticipated to be completed in 2012 and supply up to 200 million cubic meters of natural gas per annum which is expected to reach full capacity in 2013.
Earlier, the company had secured contracts for the supply of up to 200 million cubic meters of natural gas with China National Petroleum Corporation.
Following the acquisition, LJNGL will be renamed as Liaoning Jianping Fortune Gas.
According the company, a further payment may be made by Fortune if over the five years following the completion of the acquisition it receives per annum dividends exceeding 20% of the initial payment.
The payment will be the excess over the 20% subject to a maximum of CNY7m ($1.06).
