Mainland supply increasingly tight due to rapid demand and robust growth
Piped-gas supplier China Gas Holdings has branched out to upstream exploration by paying 62.16 million yuan for a substantial stake in a producer in Sichuan.
The deal saw the company become the second-largest shareholder of state-owned Chongqing Din Fat Industry after it bought a 38.69 per cent stake previously held by cash-strapped A-share company Zarva Technology (Group) in an auction.
China Gas, which switched to supplying gas supply from retailing apparel about three years ago, will gain access to about 40 gas wells of Dianjiang-based Chongqing Din Fat.
'The deal size is not big, but its significance is we will have higher certainty in the gas supply for our projects outside Sichuan,' a company spokesman said.
The deal came at a time when supply of gas is increasingly tight due to rapid demand and robust growth.