Mar. 19, 2018
Huifeng Petrochemical, a wholly-owned subsidiary of Huifeng Agrochemical
, announced signing of a Frame Agreement on Investment and Cooperation with the Administration Committee of Jiangsu Dafeng Port Economic Development Zone, on March 9, 2018.
According to the announcement, the two parties will cooperate in the construction of a new LNG terminal in Dafeng Port, Yancheng, Jiangsu to mitigate the short supply of LNG resources in east China. The project covers construction of an LNG pier and LNG reserve warehouse estimated to cost Yuan8 billion, with Phase 1 to cost Yuan6 billion.
A joint venture between Huagang Gas, Huifeng Petrochemical and Dafeng Port Holding will be established to take control of project construction and operation, in which Huifeng Petrochemical holds 35 % equity shares.
The announcement says that the project is expected to benefit the structural optimization of the company and will become a new source of profitability which will enhance the competitive edge of the company. The launch of the project is well in line with the company’s 13th-Five Year Plan in the best interests of shareholders of the company.