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Changfeng Energy Inc. is a
Canadian company listed on the
Toronto Venture Exchange. The
Changfeng Group "CF Group",
through Changfeng China "CF
China", is engaged in the design
and construction of natural
gas distribution networks and
the distribution of natural
gas to residential and commercial
customers in the greater Sanya
region, Hainan Province, People's
Republic of China "PRC".
The primary business objective
of the CF Group is to become
one of the most predominant
natural gas distributors in
the southern PRC. The CF Group
has acquired a Hainan Natural
Gas Operating Permit which provides
it with the rights to distribute
natural gas throughout the greater
Sanya region. The CF Group has
developed a natural gas pipeline
network in Sanya City and is
in the process of expanding
the distribution network in
various other communities throughout
the greater Sanya region.
In Q3 2007, CF China commenced
the construction of a pipeline
to extend its current networks
to the world famous Yalong Bay
Resort area. Yalong Bay is Hainan's
most popular beach east of Sanya
City. The seven-kilometer stretch
of white sand beach is the home
to more than a dozen large international
hotels, including the Marriott,
Hilton, Sheraton, Hyatt, etc.
The project will include the
construction of a 20 km intermediate
pressure pipeline and two pressure
regulating stations. The regional
networks were completed to take
in the gas from the pipeline.
This fully funded project is
expected to be completed by
the second quarter of 2008.
The gas usage capacity in the
area is expected to reach 10
M3 per year and will increase
as more hotels are constructed.
Current natural gas demand
in China is estimated to be
65-70 BCMs per annum. The Chinese
government is predicting demand
to increase to 200 BCMs by 2020.
Natural gas only represents
about 3% of the country's total
primary energy supply (TPES)
and about 2.5% of the total
energy consumption. This is
very low compared to the world
average of 24% and to the Asian
average of 8.8% of gas in the
TPES. The Chinese Government
is planning a dramatic increase
of gas usage in the country's
energy supply mix over the next
ten years, with the target of
6% of TPES by 2010. Increasing
the share of natural gas usage
is at the heart of the Chinese
government's proposed top priorities
in rationalizing the energy
supply structure.
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Changfeng
Energy is a public company
which trades on the TSX
Venture Exchange under the
trading symbol CFY. Click
here
to view Changfeng Energy's
stock performance on the
TSX Venture Exchange. All
quotes are delayed 15 minutes
unless otherwise stated. |
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