OREANDA-NEWS. October 15, 2014. China Tian Lun Gas Holdings Limited ("China Tian Lun Gas" or the "Group"; stock code: 1600.HK), a gas operator and distributor with nationwide coverage in China, has formed a joint venture Inner Mongolia Oil and Gas Investment Joint-stock Co., Ltd. with Inner Mongolia Transportation and Investment Co., Ltd. and Inner Mongolia Minghua Energy Group Co., Ltd. and the inaugural ceremony was held in Beijing.

Inner Mongolia Autonomous Region is an important energy base in the PRC. In order to strengthen the output of clean energy in Inner Mongolia, to protect national energy supply safety and treat regional haze issues, the government of Inner Mongolia Autonomous Region has reached an agreement with those of four provinces and cities including Beijing, Tianjin, Hebei and Shandong in relation to the "4+1" clean energy transmission. To achieve this end, Inner Mongolia Transportation and Investment Co., Ltd. took the lead in establishing Inner Mongolia Oil and Gas Investment Joint-stock Co., Ltd. as an oil and gas investment company with mixed-ownership, which is controlled by state-owned capital with investments from private capital.

Inner Mongolia Oil and Gas has an initial registered capital of RMB1.5 billion, with RMB600 million to be contributed by Inner Mongolia Transportation and Investment Co., Ltd. which will hold its 40% equity interest, RMB500 million to be contributed by China Tian Lun Gas Holdings Limited which will hold its 33.33% equity interest, and RMB400 million to be contributed by Inner Mongolia Minghua Energy Group Co., Ltd. which will hold its 26.67% equity interest.

Founded in June 1997, Tian Lun Group has its business covering natural gas, real estates and investing and is a large conglomerate with total assets of over RMB10 billion and a Hong Kong-listed company and more than 50 subsidiaries. It has been recognised as a "Most Innovative Enterprise" for several consecutive years. China Tian Lun Gas Holdings Limited under the Tian Lun Group became listed on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 1600HK) in November 2010 and has a market capitalisation of over HKD8 billion, ranking among the top listed gas companies.

With a registered capital of RMB10.9 billion, Inner Mongolia Transportation and Investment is a large wholly state-owned enterprise supervised in accordance with the standards for Class I large state-owned enterprises (Department Level). Its principal functions and responsibilities are investment, financing, operation and management of major transportation and infrastructure projects relating to railway, civil aviation and ports on behalf of the government of Inner Mongolia Autonomous Region, and it serves as a vital infrastructure investing and financing platform in the Inner Mongolia Autonomous Region.

Inner Mongolia Minghua Energy Group Co., Ltd. is a conglomerate focusing on energy industry. In 2013, it had total assets of RMB11 billion and operating revenue of RMB11.3 billion, and paid taxation of RMB380 million, ranking 7th among the top 100 private enterprises in Inner Mongolia.

The joint venture proposes to construct two natural gas (including coal-made gas) transmission pipelines for transportation of gas generated by gas fields and oil fields, coal bed methane, coke oven gas and coal-made gas from Inner Mongolia Autonomous Region to Beijing, Tianjin, Hebei and Shandong for sale. With a designed initial transmission capacity of 50 billion m3/year, the natural gas transmission pipelines have a total length of 2,930 kilometres and the total investment amount is expected to be RMB55 billion.