SINGAPORE: The board of directors of AEI Corporation Ltd. announced that the company and Zhongneng International Gas Co., (ZNI) have entered into a framework agreement dated 13 June 2019 in relation to the proposed collaboration with respect to the purchase and sale of liquefied natural gas (LNG) and LNG business activities. [the_ad id=”31605″]Zhongneng International Gas (ZNI), a company incorporated in Beijing in 2014 with a registered share capital of RMB 100 million, is in the business of import and purchase of LNG, domestic sales and warehousing logistics and distribution, logistics facilities construction and equipment manufacturing.
Zhongneng International Petrochemical Co., Ltd., a China state-owned enterprise, holds 51% equity in ZNI.
The proposed collaboration comprises the following activities:
LNG Purchase Collaboration (a) Zhongneng International Gas (ZNI) shall appoint AEI Corporation to act as its agent to purchase not less than 6,000,000 metric tonnes of LNG annually from international suppliers; (b) AEI shall work with ZNI to purchase ISO Containers LNG used on the Yangtze River Basin; (c) the parties shall incorporate a joint venture entity in Shanghai to undertake LNG trading and logistic activities. The joint venture shall supply LNG for power generation to ZNI, for the purposes of serving ZNI’s electrical power customers; (d) ZNI agrees to AEI’s participation in the investment and construction of port facilities and the operation of LNG ISO Containers projects located along the Yangtze River; and (e) AEI Corporation shall plan to participate in the establishment of structured funds for the related LNG logistics facilities and trade investment.