China Lng Group Limited 中國天然氣集團有限公司*
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHINA LNG GROUP LIMITED 中國天然氣集團有限公司 * (Incorporated in the Cayman Islands with limited liability) (Stock Code: 931) INSIDE INFORMATION – INVESTMENT COOPERATION AGREEMENTS (1) THE SHALE GAS LIQUEFACTION PLANT AND LNG CLEAN ENERGY LOGISTICS BASE PROJECT IN XINGWEN COUNTY, SICHUAN PROVINCE; (2) THE COALBED METHANE LIQUEFACTION PROJECT IN QINSHUI COUNTY, SHANXI PROVINCE; (3) THE LNG PEAK SHAVING RESERVE PROJECT IN GAOYI COUNTY, HEBEI PROVINCE; AND (4) THE LNG PEAK SHAVING RESERVE AND INDUSTRIAL COMPREHENSIVE LNG UTILISATION PROJECT IN PINGQUAN COUNTY, HEBEI PROVINCE This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions. INSIDE INFORMATION On 30 January 2018, CLNG Natural Gas, a wholly-owned subsidiary of the Company, and the People’s Government of Xingwen County, Sichuan Province entered into an investment framework agreement in relation to the shale gas liquefaction plant 1 million Nm3/day and LNG clean energy logistics base project in Xingwen County, pursuant to which a subsidiary will be established for the investment, construction and operation of the shale gas liquefaction plant and LNG clean energy logistics base project in Xingwen County. On the same date, CLNG Natural Gas, a wholly-owned subsidiary of the Company, and Mr. Wang Chaofeng entered into an investment cooperation framework agreement, pursuant to which CLNG Natural Gas will invest in, develop and operate the 600,000 Nm³/day Coalbed Methane liquefaction project under the name of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* (山西嘉沁煤層氣 開發有限公司), under the effective control of Mr. Wang Chaofeng, by acquiring its controlling interest. Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* has obtained the land for the project and an investment project fi ling certifi cate issued by the National Development and Reform Commission. 1 On the same date, Hebei Gangzhong, a wholly-owned subsidiary of the Company, and the People’s Government of Gaoyi County entered into a strategic cooperation framework agreement in relation to the LNG peak shaving reserve project with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre, pursuant to which Hebei Gangzhong will invest in, develop and operate the Gaoyi LNG peak shaving reserve with a fleet of 300 LNG refilling trucks and an advanced dispatch control centre. On the same date, CLNG Investment, a wholly-owned subsidiary of the Company, and the People’s Government of Pingquan County, Hebei Province entered into an investment agreement in relation to the LNG peak shaving reserve and industrial comprehensive LNG utilisation project, pursuant to which a subsidiary will be established for the investment and construction of a LNG peak shaving reserve and urban-rural ancillary pipeline network in Pingquan Economic Development Zone. The Board wishes to emphasise that no binding agreement in relation to the investments has been entered into as at the date of this announcement. Therefore, the investments may or may not proceed. Investors and Shareholders are urged to exercise caution when dealing in the shares of the Company. Further announcements in respect of the investments will be made by the Company as and when appropriate in accordance with the Listing Rules. This announcement is made by China LNG Group Limited (the “Company”, together with its subsidiaries, the “Group”) pursuant to Rule 13.09(2) of the Rules (the “Listing Rules”) Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The purpose of this announcement is to enable the shareholders of the Company (the “Shareholders”) and the public to appraise the position of the Group. INVESTMENT FRAMEWORK AGREEMENT IN RELATION TO THE SHALE GAS LIQUEFACTION PLANT 1 MILLION Nm3/DAY AND LNG CLEAN ENERGY LOGISTICS BASE PROJECT The board (“Board”) of directors (“Directors”) of the Company announces that on 30 January 2018, CLNG Natural Gas Co., Ltd. (港能天然氣有限責任公司) (“CLNG Natural Gas”), a wholly-owned subsidiary of the Company, and the People’s Government of Xingwen County, Sichuan Province (四 川省興文縣人民政府) entered into an investment framework agreement in relation to the shale gas liquefaction plant 1 million Nm3/day and liquefied natural gas (“LNG”) clean energy logistics base project in Xingwen County, pursuant to which a subsidiary will be established for the investment, construction and operation of the shale gas liquefaction plant and LNG clean energy logistics base project in Xingwen County. 2 INFORMATION ABOUT XINGWEN COUNTY, SICHUAN PROVINCE Xingwen County, located at Yibin City, Sichuan Province, is richly endowed with shale gas resources and recognised as a national demonstration zone of shale gas development with recoverable shale gas resource reserves of over 100 billion Nm³. Shale gas industry is ranked first among the top five high- end developing industries in Sichuan Province. Xingwen County Government, being the local competent authority with significant power in use of resources, intends to cooperate with the Company to promote the comprehensive utilisation of shale gas within its territory. Pursuant to the investment framework agreement, details of the collaboration are as follows: (1) The total investment of the shale gas liquefaction plant 1 million Nm3/day and LNG clean energy logistics base project in Xingwen County will be approximately RMB1.068 billion, including investment in shale gas liquefaction plant 1 million Nm3/day and LNG clean energy logistics base of RMB668 million and RMB400 million, respectively. Each of the shale gas liquefaction plant 1 million Nm3/day and the LNG clean energy logistics base will be developed on a land of 200 mu. It is estimated that the annual sales income will reach approximately RMB1 billion. (2) CLNG Natural Gas will invest in, develop and operate the shale gas liquefaction plant 1 million Nm3/ day and LNG clean energy logistics base project in Xingwen County through its newly established wholly- owned subsidiary. (3) Xingwen County Government will assign the land according to law. The Group proposes to set up a shale gas liquefaction plant of 1 million Nm³ per day in Xingwen County to promote the use of natural gas by way of LNG in the county and transfer the resources to the surrounding areas such as Yunnan and Guizhou. This project will secure one more source of LNG supply to the Group, which enhances the Group’s capability to safeguard its natural gas supply and reduces the cost. INVESTMENT COOPERATION FRAMEWORK AGREEMENT IN RELATION TO THE 600,000 NM3/DAY CBM LIQUEFACTION PROJECT The Board announces that on 30 January 2018, CLNG Natural Gas, a wholly-owned subsidiary of the Company, and Mr. Wang Chaofeng entered into an investment cooperation framework agreement, pursuant to which CLNG Natural Gas will invest in, develop and operate the 600,000 Nm³/day coalbed methane (“CBM”) liquefaction project under the name of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* (山西嘉沁煤層氣開發有限公司), under the effective control of Mr. Wang Chaofeng, by acquiring its controlling interest. 3 INFORMATION ABOUT QINSHUI COUNTY, SHANXI PROVINCE AND SHANXI JIA QIN COALBED METHANE DEVELOPMENT CO., LTD.* Qinshui County, located at Jincheng City, Shanxi Province, is a major coal producing zone in China. The project is situated at the hinterland of Qinshui coalfield, the area with the most abundant CBM resources in China. Our partner, Shanxi Jia Qin Coalbed Methane Development Co., Ltd.*, possesses valid qualification for CBM liquefaction and processing, and has entered into agreements of intent in relation to gas supply with two upstream gas resource companies, namely China United Coalbed Methane Corporation, Ltd.* (中聯煤層氣有限責任公司)(a wholly-owned subsidiary of China National Offshore Oil Corporation) and Shanxi Blue Flame Coalbed Methane Group Co., Ltd.* (山西藍焰煤層氣集團有限 責任公司). It has obtained the land for the project and an investment project filing certificate issued by the National Development and Reform Commission. Pursuant to the investment cooperation framework agreement, details of the collaboration are as follows: (1) The 600,000 Nm³/day CBM liquefaction project is under the name of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.*, which has obtained the filing certificate for the project and land use rights certificates for part of the land. (2) CLNG Natural Gas will become a shareholder of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* by holding its 60% equity interest through equity transfer. (3) CLNG Natural Gas will develop and operate the 600,000 Nm³/day CBM liquefaction project through its holding in Shanxi Jia Qin Coalbed Methane Development Co., Ltd.*. Upon commencement of cooperation, the Company will utilise the land and qualification of Shanxi Jia Qin Coalbed Methane Development Co., Ltd.* to set up a CBM liquefaction plant with CBM liquefaction capacity of 600,000 Nm³ per day. This project will secure another source of LNG supply to the Group, and safeguards