TORONTO, Jan. 07, 2019 (GLOBE NEWSWIRE) -- Changfeng Energy Inc., (TSXV: CFY) (“Changfeng” or the “Company”), an energy provider in the People’s Republic of China (the “PRC”), is pleased to announce that, further to the signing of the memorandum of understanding between Changfeng and Guangdong Natural Gas Grid Co., Ltd. (“Guangdong Grid”) in April 2018 to jointly pursue natural gas pipeline projects in the Guangdong Province, the PRC, Guangdong Grid, Guangdong Datang International Zhaoqing Heat & Power Co., Ltd. (“Guangdong Datang”), a subsidiary of China Datang Corporation Limited and Zhaoqing Gaoyao Hengtai Natural Gas Co., Ltd. (“Hengtai Gas”), a controlled subsidiary of Changfeng have entered into an agreement (the “Agreement”) for the pipeline transportation of natural gas to the Gaoyao Combined Heat, Power and Cold Natural Gas Power Plant (the “Guangdong Datang Gaoyao Plant”) of Guangdong Datang via the pipelines of Guangdong Grid and Hengtai Gas.
The Agreement is effective until December 31, 2020, and provides that three months before the expiry date, the parties to the Agreement will negotiate terms for the renewal of the Agreement. The pipeline transportation fee for the natural gas transported by Hengtai Gas to the Guangdong Datang Gaoyao Plant will be based on step-ladder scale in accordance with the amount of natural gas transported. The Datang Guangdong Gaoyao Plant has an installed power generation capacity of 357.9 million kWh and the agreement outlines [584.6] million cubic meters of natural gas to be transported in 2019-2020. On November 14, 2018, Guangdong Datang began a trial operation to transport natural gas through the Changfeng pipeline to the Datang Gaoyao Plant.
“It has been many years since we first disclosed Changfeng’s project in Guangdong and it is my pleasure to be able to share with everyone this great news. Datang will be the first of our many customers in Guangdong. Gaoyao, Zhaoqing is within one of the four cities (Zhaoqing, Zhongshan, Foshan and Zhuhai) in which Changfeng has exclusive government approval to build natural gas pipelines for industrial end users. Moving forward, we expect more success in the Guangdong province.” Huajun Lin, CEO and Chairman of Changfeng states.
Guangdong Datang International Zhaoqing Heat & Power Co., Ltd. ()
Guangdong Datang is a subsidiary of Datang International Power Generation Co., Ltd. (“Datang International”). Together with its subsidiaries, Datang International engages in power generation and power plant development in the PRC. Datang International generates electricity through various sources, such as coal, thermal, hydro, wind, nuclear, solar, and natural gas. As of December 31, 2017, Datang International managed an installed capacity of approximately 48,031.175 MW. Datang International also engages in heat supply; the import of power related fuel; coal mining and trading; silicon and aluminium smelting; the production and sale of alumina; cargo shipping; the sale of coal ash and integrated application of solid wastes; the repair and testing of power equipment; and the provision of power related technical services. Datang International was formerly known as Beijing Datang Power Generation Co., Ltd., which was founded in 1994 and is headquartered in Beijing, the PRC.
Datang Website: www.dtpower.com
Guangdong Natural Gas Grid Co., Ltd. ()
Guangdong Grid was established in March 21, 2008, in the Guangdong, the PRC. Guangdong Grid is a joint venture of the China National Offshore Oil Corporation (“CNOOC”), the Sinopec Group, PetroChina Company Limited and the Guangdong Yudean Group Co., Ltd., with a registered capital of RMB3.98 billion. Guangdong Grid was formed with the purpose of establishing a province-wide network of natural gas trunk pipelines by 2020. The Guangdong pipeline network is more than 3,200 km in length, with a total planned investment of approximately RMB470 billion. The Guangdong pipeline network is expected to cover the Pearl River Delta, eastern Guangdong, northern Guangdong, and the four regional Western Guangdong pipe networks to cover 21 cities in Guangdong over the city-level natural gas distribution network, reaching annual gas transmission capacity of approximately 60 billion cubic meters.
Since it commenced operations in 2008, Guangdong Grid has completed over seven hundred (700) km of pipeline construction. The pipeline has been extended to Zhaoqing, Zhongshan, Foshan and Zhuhai, which are the cities where Changfeng has exclusive government approval to build natural gas pipelines for industrial end users.
Guangdong Grid is the exclusive vehicle to move the gas inside Guangdong and delivered up to approximately 19.65 billion cubic meters of natural gas in 2017. The gas is from Petro China’s Second West to East Pipeline and CNOOC’s 3-1 gas well in Laiwan Bay, Guangzhou, as well as the re-gasified liquefied natural gas (LNG) from CNOOC’s receiving terminal in Zhuhai. Husky Energy holds 49% of the equity of the Laiwan Bay gas well, while the remaining 51% is held by CNOOC.
Guangdong Grid Website: https://www.gdngg.com.cn
About Changfeng Energy Inc.
Changfeng Energy Inc. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. Changfeng strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, Changfeng was recognized as being one of China’s the Top Ten Most Influential Brands in the Natural Gas Industry.
Changfeng Energy Website: https://www.changfengenergy.com
CONTACT INFORMATION
Corporate Investment Relations
Investor.relations@changfengenergy.cn
Ann Siyin Lin
VP, Corporate Development
ann.lin@changfengenergy.cn
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, included or incorporated by reference in this document are Forward-Looking Statements, including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future. These Forward-Looking statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words or the negative thereof. No assurance can be given that the plans, intentions or expectations or assumptions upon which these Forward-Looking Statements are based will prove to be correct and such Forward-Looking Statements included in this news release should not be unduly relied upon.
Although management believes that the expectations represented in such Forward-Looking Statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such Forward-Looking Statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such Forward-Looking Statements. These factors include, without limitation, no significant and continuing adverse changes in general economic conditions or conditions in the financial markets. Readers are cautioned that all Forward-Looking Statements involve risks and uncertainties, including those risks and uncertainties detailed in the Corporation’s filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider those factors.
The Forward-Looking Statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
