By OGJ editors
HOUSTON, May 11 -- The Hangzhou Gas (Group) Co. Ltd. (HGG), Shell (China) Ltd., Shell China BV, and Hong Kong & China Gas Co. Ltd. (Towngas) have signed a joint venture contract to build, operate, and manage a high-pressure natural gas pipeline system in Hangzhou, China.
Work began last year on the 117-km pipeline and two city-gate stations, estimated to cost $91 million. Currently, 18 km of pipeline and one city-gate station are complete. The city-gate station and 9 km of the completed pipeline are in operation, supplying 150,000 cu m/day of gas to 190,000 users in Hangzhou.
The project, expected to be complete in 2008, will operate at its 600 million cu m/year capacity in 2010.
HGG will own a 51% share in the JV, while the Shell companies will own 39% and Towngas, 10%.
