Gas operator China Tian Lun Gas and the International Finance Corporation, a member of the World Bank Group, executed a loan agreement for US$60 million that will help Tian Lun Gas expand the supply of natural gas in China’s cities.
The loan follows a US$150 million equity investment by IFC and IFC Global Infrastructure Fund in May 2015, making them the second-largest shareholders in the company on a combined basis.
The borrower will be Henan Tian Lun Gas, a wholly owned subsidiary of Tian Lun Gas. The loan will enable Tian Lun Gas to expand and acquire city gas concessions, and build related infrastructure or plants, IFC said in a statement.
With China’s air pollution challenges becoming more pressing by the day, natural gas is fast becoming one of the key clean energy sources in China’s low-carbon model for economic development.
With the support of national policies, the natural gas sector has immense market potential in China, paving the way for greater growth opportunities for Tian Lun Gas, the statement said.
Tian Lun Gas is principally engaged in three areas, comprising: city gas, LPG stations and production and sales of LNG, as well as long-haul gas pipeline construction and direct supply to industrial users.
The company currently owns 49 city gas projects, more than 50 CNG/LNG refilling stations (38 in operation; more than 12 under construction), two LNG processing plants under construction and three long-haul gas pipelines projects in operation in 16 provinces.