Guangdong Grid, Guangdong Datang International Zhaoqing Heat & Power and Zhaoqing Gaoyao Hengtai Natural Gas have entered into an agreement for the pipeline transportation of natural gas to the Gaoyao Combined Heat, Power and Cold Natural Gas Power Plant of the former through the pipelines of Guangdong Grid and Hengtai Gas.
Changfeng said that some of its subsidiaries 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.
Changfeng states CEO and chairman Huajun Lin said: “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.”
Source: Company Press Release