Changfeng Energy Inc. announced that Sanya Changfeng Offshore Natural Gas Distribution Co., Ltd., a wholly owned subsidiary, has entered into a joint venture agreement with Tangshan Caofeidian Development Investment Group Co., Ltd. (CFD Group) to jointly pursue liquefied natural gas (LNG) trading, natural gas distribution, transportation and related infrastructure construction.
The joint venture is called Caofeidian Evergrowth Energy Co., Ltd. and is based in Tangshan City, Hebei province, China. The registered capital of the joint venture is CNY 200 million (USD 32 million). Changfeng and CFD Group each own 50% of the joint venture. Under the joint venture agreement, both parties of the joint venture agree to work with a third party to establish and operate an energy resource exchange in Northern China.
CFD Group is a state-owned enterprise established in July 2007. The State Assets Management Office of Caofeidian Industrial Zone, which is responsible for the financing and investment of infrastructure and city operations, invested the initial capital for CFD Group. CFD group owns 37 subsidiaries, which are involved in various industries such as real estate, tourism and hotels, logistic, road and railway, architecture, utilities, water treatment facilities, sea desalination and telecommunication.
Changfeng Energy Inc. is a natural gas service provider with operations throughout China. The company services industrial, commercial and residential customers, providing them with natural gas for heating purposes and fuel for transportation. The company has developed a significant natural gas pipeline network as well as urban gas delivery networks, stations, substations and gas pressure regulating stations in Sanya City and Haitang Bay. The company is headquartered in Toronto, Ontario, Canada. Its shares trade on the Toronto Venture Exchange under the trading symbol CFY.