Commodity Online
Export Development Canada has announced it has signed a line of credit (LOC) agreement for USD 30 million with China Gas Holdings Ltd. (HKG:0384) of Hong Kong.



China Gas Holdings Ltd. is engaged in the investment, construction and management of city gas pipeline infrastructure, distribution of natural gas and liquefied petroleum gas (LPG) to residential, industrial and commercial users. EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business.

According to the terms & conditions of the deal, China Gas shall purchase Compressed Natural Gas (CNG) equipment from IMW Industries Ltd. of Chilliwack, British Columbia (Canada). The LOC agreement shall be valid for 5 years and shall enable financing for equipment purchases by China Gas which is building a network of natural gas fueling stations for buses and taxis.

China Gas plans to build at least 120 CNG refueling stations from between 2010-2012 and this project is anticipated to minimize greenhouse gas emissions by over 150,000 tonnes.

China Gas closed at 2.16 losing 1.82% at Hong Kong Stock Exchange as on Thursday. It touched a 52-week high of 2.45 and low of 0.47.

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