China Natural Gas Group signed cooperation framework agreement with XCMG       

In July 29, 2014, China National Natural Gas Corporation (00931.HK) and Xugong Group entered into a framework agreement on the purchase of liquefied natural gas (LNG) construction machinery vehicles and their cooperation in the capital market.

According to the agreement, China natural gas group will invest with a large state-owned enterprises to develop liquefied natural gas business and provide technical support, priority and regular self Xugong to buy liquefied natural gas supply engineering machinery vehicles, China large-scale logistics enterprises and related engineering units; the large state-owned enterprises to provide long-term continuous support to Xugong in liquefied natural gas the supply side. In addition, the basic cooperation above, the two sides will also cooperate to invest in the capital market.

It is understood that, since 2013, China Natural Gas Group Co., Ltd. has invested great efforts to negotiate with the Chinese provincial governments to develop LNG business.

Signed the strategic cooperation agreement, the strategic cooperation China gas group and Xugong Group combination, complementary advantages, win-win cooperation, manufacturing advantages through the production of Xugong Group resource advantage in the international market and liquefied natural gas company professional engineering machinery vehicle, so that both sides of the cooperation by now sporadic sales into large-scale operation of the market. This Chinese for Natural Gas Group innovative marketing model, has very important significance to do better the LNG engineering machinery vehicle core plate.