Export Development Canada (EDC, the Canadian export credit agency) has provided a US$250mn loan to China Gas Holdings (CGH).
The finance will be used to purchase of cleantech products from the Canadian company IMW Industries (a subsidiary of Clean Energy Fuels). Included in the purchases will be 416 compressors, 188 dryers, 527 dispensers and 387,550 litres of buffer storage space.
A large part of the Chinese government’s 12th five-year-plan was based around reducing dependency on coal and oil and to generally try and rebalance their energy dependency.
It’s not the first financing package EDC has given to CGH in order to work with IMW. In 2009, CGH received US$30mn for the purchase of IMW products.
CGH is based in Hong Kong but is one of mainland China’s largest suppliers of natural gas. Its executive chairman Lui Ming Hui says: “We have enjoyed a beneficial collaboration with EDC since 2009 and we are delighted to receive their support again. Apart from our strong business performance, our good corporate governance and environmental protection efforts have favourably impressed EDC.
“This loan facility provides China Gas with more financial flexibility to further expand our city gas project portfolio, as well as to forge ahead with our compressed natural gas refuelling station expansion strategies as one of the Group’s new growth drivers. We will continue to explore new opportunities in order to drive the development of clean energy in China.”