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Changfeng Energy announced that the company will establish a joint venture with CNPC Kunlun Natural Gas Exploitation, a wholly-owned subsidiary of PetroChina, to jointly develop natural gas distribution business in four prefecture-level cities in Guangdong Province, China, including Zhaoqing City, Jiangmen City, Foshan City and Zhuhai City.

The intended joint venture will be named Guangdong CNPC Kunlun Changfeng Investment Co., Ltd. and will be based in Guangzhou city, the capital city of Guangdong province. The registered capital of the intended joint venture will be RMB30,000,000 (approximately $4,690,000). Changfeng will own 49% and CNPC Kunlun Exploitation will own 51% of the intended joint venture.

The intended joint venture will be engaged in constructing and operating the gas transmission pipelines and associated facilities which will link from the existing and/or planned provincial trunk lines to industrial users, power generators and/or urban pipeline natural gas operators within Yuexi Area, and delivering and selling natural gas to those users through the Pipelines and the provincial trunk lines.

CNPC Kunlun Exploitation has received regulatory approval from the Guangdong Provincial Development and Reform Commission to develop this project.