Fortune Oil Takes Stake in CNPC Pipelines

Fortune has agreed to take up to an 80 percent share in a joint venture with China National Petroleum Corporation, which will own and operate four distribution pipelines. The pipelines will offtake natural gas from the Shaanxi-Beijing trunk pipeline system for supply to the cities of Shouzhou, Pinglu, Jinshajing and Tianjin. The joint venture will also construct local gas reticulation systems and will sell natural gas to domestic and industrial consumers in the cities.

Fortune's initial investment is expected to be £3 million and will be payable from cash and banking facilities. Asset valuations and due diligence have commenced and a further announcement will be made as soon as these are completed.