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Datang International Power invests $576m in mainland's gas project
2010-May-26 09:12:32

HONG KONG - Datang International Power, the Hong Kong-listed unit of the State-owned power generator China Datang, has said it would invest 3.93 billion yuan ($576 million) to set up a joint venture for a coal-based gas project in North China's coal-rich Inner Mongolia.

In a statement filed to the Hong Kong stock exchange on Monday night, Datang International Power said its wholly-owned subsidiary Energy and Chemical Company contributed 51 percent of capital to establish the coal-based gas company to build and operate the gas project.

Beijing Gas Company, China Datang and Tianjin Jinneng will contribute 34 percent, 10 percent and 5 percent of capital, respectively.

The coal-based gas project, located in Kesheketeng Qi, Inner Mongolia, owns a production of 4 billion cubic meters of natural gas per annum.

China Datang has a controlling stake of 35.08 percent of Datang International Power, according to the statement.

Shares of Datang International Power lost 3.47 percent to end at HK$2.78?(36 US cents) on Tuesday.

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