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Beijing Gas Blue Sky acquires 29% equity interest of a LNG terminal in Caofeidian, at a consideration of approximately HK$1200 million

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Source: Media Outreach
Headline: Beijing Gas Blue Sky acquires 29% equity interest of a LNG terminal in Caofeidian, at a consideration of approximately HK$1200 million
HONG KONG, CHINA – MediaOutReach – 28December 2017 – Beijing Gas Blue Sky HoldingsLimited(“the Company” or “Beijing Gas Blue Sky”, together with itssubsidiaries, the “Group”, HKSE: 6828) is pleased to announce that, theCompany entered into the Acquisition Agreement with Beijing Gas HK (an indirectwholly-owned subsidiary of Beijing Gas Group) and Beijing Gas Group, pursuantto which the Company has conditionally agreed to acquire all of the issuedshare capital of the Target Company. The Consideration for the Acquisition isRMB1,008 million (equivalent to approximately HK$1,204 million), which shall besatisfied by the issuance by the Company of 2,408 million Consideration Sharesat the Issue Price of HK$0.50 per Consideration Share.

Beijing Gas HK ownsapproximately 26.87% of the issued share capital of the Company. Immediatelyupon completion of the Acquisition, Beijing Gas HK will hold approximately 41.24%of the issued share capital of the Company as enlarged by the issuance of theConsideration Shares.

The Target Companyis a wholly-owned subsidiary of Beijing Gas HK and it indirectly owns 29%equity interest in PetroChina Jingtang. PetroChina Jingtang is also owned byPetroChina Kunlun Gas Co., Ltd. and Hebei Natural Gas Co., Ltd. as to 51% and20% respectively. It is principally engaged in provision of port facilities forvessels, provision of cargo handling services, warehousing and loading serviceswithin the port area, and receiving, storage and re-gasification of liquefiednatural gas.

The liquefiednatural gas receiving terminal of PetroChina Jingtang, located in CaofeidianIndustrial Zone, Tangshan City, Hebei Province, is an important naturalgas supply facility in North China. This receiving terminalconsists of port project, receiving terminal project (with a planned handlingcapacity of 10 million tons per year) and out-terminal pipelines, with a landarea of approximately 48 hectares and sea area of approximately 135 hectares. Importedliquefied natural gas is gasified by the receiving terminal and transmitted tothe Yong Tang Qin pipeline, and then to Shaanxi-Beijing second line pipenetwork in the west and Northeast pipe network in the east. The receiving terminalis an important supporting facility for the natural gas pipe network inBeijing, Tianjin and North China. In addition, PetroChina Jingtang alsosupplies liquefied natural gas to its surrounding areas such as Tangshan,Chengde, Tianjin and Qinhuangdao via various distributors. PetroChina Jingtangnot only safeguards the supply of natural gas in Beijing, but also plays acrucial role in further promoting the “coal-to-gas” reform inBeijing-Tianjin-Hebei region, optimizing the comprehensive use of natural gas,and providing more adequate and reliable natural gas supply.

Based on theunaudited accounts of PetroChina Jingtang prepared in accordance withInternational Financial Reporting Standards, it recorded a net profit ofapproximately RMB436.72 million for the nine months ended 30 September 2017 anda net profit of approximately RMB168.95 million for 2016. PetroChina Jingtanggasified approximately 2.86 billion cubic meters of natural gas during the ninemonths ended 30 September 2017 and approximately 2.49 billion cubic meters ofnatural gas in 2016.

Mr. TommyCheng, Co-Chairman and Executive Director of the Group said that “Currently, most ofthe gas distributors and private enterprises in the PRC are unable to obtainthe right to use LNG terminals. We expect that the Acquisition will furthersecure the source of supply of natural gas to Beijing Gas Blue Sky and enhanceour bargaining power of imported LNG, laying a solid foundation for the Group’sLNG import business. Looking ahead, coal-to-gas and clean heating will be thekey opportunities of the natural gas industry. We expect that the Acquisitionwould further promote the Group’s strategic development of the entire businesschain of liquefied natural gas, create synergies among the Group’s differentbusiness segments and enhance the Group’s competitiveness and overallprofitability.”
About Beijing Gas Blue SkyHoldings Limited
Beijing Gas Blue Sky HoldingsLimited (“Beijing Gas Blue Sky”, HKSE stockcode: 6828) is an integrated natural gas provider, distributor and operator,with an emphasis on the midstream and downstream natural gas development. Ournatural gas business includes: (i) construction and operation of compressednatural gas (“CNG”) and liquefied natural gas (“LNG”) refueling stations forvehicles; (ii) construction of natural gas pipelines and operation of city gasprojects by providing piped gas; (iii) direct supply of LNG to end-users; and(iv) trading and distribution of CNG and LNG.

The Group has adapted to the“One Belt One Road” policy, and focus on operating and investing natural gasbusiness. The Group is actively expanding its business development anddistribution, as well as continues to gradually expanding the scale ofoperations. Currently, the Group has business presence in several provinces inNortheast China, East China, Central South China and Southwest China, includingLiaoning Province, Jilin Province, Shandong Province, Shanxi Province, AnhuiProvince, Zhejiang Province, Hubei Province, Guizhou Province, Sichuan Provinceand Hainan Province, etc. The Group is committed to its vision: “developclean energy, enhance customer value, create a beautiful blue sky”. In thefuture, it will continue to actively investing and developing natural gasbusiness, as well as participating in the development of natural gas industryvalue chain.

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