YAHOO BUSINESS NEWS: Shell In Talks To Build $90 Mln Gas Pipeline In China (ShellNews.net) Posted 15 April 05
BEIJING (Dow Jones)--Royal Dutch/Shell Group (RD) is planning to acquire a 39% stake in a $90 million gas pipeline joint venture in East China's Zhejiang province, marking the company's first move into China's gas distribution market, the company's spokesman said in Beijing Thursday.
The company is in talks with Hangzhou Gas (Group) Co. to build and operate a natural gas trunk pipeline to city-gate stations in Hangzhou, said Nick Wood, external affairs director of Shell (China) Ltd., a unit of Shell.
Hong Kong & China Gas Co. (0003.HK) plans to take a 10% stake in the joint venture, while the remaining 51% will be held by Hangzhou Gas, Wood said.
The natural gas will come from the West-to-East gas pipeline and gas fields in the East China Sea, he added. He didn't provide further details.
Shell has been actively involved in building gasoline service stations with Chinese companies.
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