On November 16, 2016 local time, executive vice President Lan Minna (Sandra LAGUMINA) of ENGIE group and chairman Feng Yue of Chongqing energy investment group signed a memorandum of understanding in Paris, France on strengthening bilateral cooperation.
The memorandum of understanding stressed that the two sides will strengthen existing cooperation in natural gas distributed energy, seek new cooperation opportunities in biological gas field of Chongqing, and seek for more energy trade business cooperation within the framework of the construction of oil and gas trading center in Chongqing.
The cooperation of ENGIE group and Chongqing energy investment group began in 2009. The establishment of Sino-French energy service Co., LTD. (SFES) marked the effective shareholder relations between the two sides. The two sides signed an agreement in 2015, invested 300 million yuan, strengthening the ownership structure in two stages, supporting the development of natural gas distributed energy projects. The first stage of the 200 million yuan has been completed in September 2016, based on the successful capital increase, Sino-French energy service Co., LTD. (SFES) signed an agreement on natural gas distributed energy project investment of Hechuan, this is also the first natural gas distributed energy projects involving industrial park in Chongqing. Through the investment agreement, Sino-French energy service Co., LTD. will invest 130 million yuan to register project company in Hechuan, to provide steam and electricity service for customers in Hechuan industrial park such as southwest pharmaceutical factory, Hao Thai energy Co., LTD . As a sole steam supplier in the park, as the growing of new customer demand, project size will also increase.
This memorandum of understanding is the consolidation of cooperation of both sides for many years as well as new strategic direction of the development of the both sides. The protocol reaffirmed ENGIE is committed to develop in China, especially in Chongqing, and shared vision of both sides to participate in Chongqing low carbon economic transformation, and the development of energy trading business.