Weifang city project the third by Hong Kong's dominant player in a week
Hong Kong and China Gas (Towngas) has signed its third piped-gas project in Shandong province in less than a week.
The deal announced yesterday, to develop a piped-gas project in Weifang city, will involve investment of 240 million yuan (HK$224.95 million).
Towngas has been diversifying its business from its core market in Hong Kong to the mainland as Chinese authorities encourage foreign investment in piped-gas distribution and promote the use of environmentally friendly natural gas.
Earlier, Towngas unveiled plans to plough another HK$1 billion into the mainland market next year, where it has already invested about $3.4 billion.
Hong Kong's dominant piped-gas supplier will have a 50 per cent stake in the Weifang project, which it will manage. Its partner will be the state-owned Weifang Gas General.
The project will have exclusive rights to supply gas to the industrial city in central Shandong. Weifang has a population of about 8.5 million.
