As part of the deal with the government of the city of Zhanjiang, Xinao is expected to put in place the infrastructure needed to supply an urban population of 740,000 along with chemical, food and energy industries.

In a statement Xinao Gas Chairman Wang Yusuo said, “This is the company’s second project in Guangdong province. The first, in Dongguan, was won last year. Xinao now has gas supply projects in 44 cities in 12 provinces, municipalities and autonomous regions, covering a total connectable urban population of over 20.4 million.”

The JV will use imported LNG supplied by the China National Offshore Oil Corp and BP Plc JV LNG terminal in Guangdong, which will come on stream in 2007