The new facilities are located in Xinxiang, Kaifeng, Anyang, Luoyang, Xuchang, Hebi (including Sanmenxia and Jiaozuo) and Zhoukou. These stations are in addition to the two existing refuelling stations already established and operating in Henan’s capital city Zhengzhou and Jiyuan, thereby increasing Green Dragon Gas’s total gas retail network to 27 stations.
“Green Dragon Gas has a clear vision and strategy to build a significant China CBM upstream business complemented by a substantial gas retail network in China. Henan province is currently registering gas prices at refuelling stations in the region of USD 13 to USD 15 per Mcf. Capturing the additional value by selling directly to the consumer is earnings accretive and the cornerstone of the Company’s vertically integrated strategy,” company’s CEO and founder Randeep Grewal stated.
Through a press release, the company anticipates that operations will commence in 2011 for the new stations, with an initial sales capacity of 2 BCF (70 million cubic meters) by the end of the first year of operations. This is expected to rise to 6 BCF (211 million cubic meters) annually thereafter, as all facilities/ stations come on line. Green Dragon Gas expects to be able to repeat this expansion in the downstream footprint in line with the upstream production growth.