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IDG Energy Investment and JUSDA Form a Joint-Venture Company To Launch Independent LNG Logistics Business

  • IDG Energy Investment Limited and JUSDA Supply Chain Management International CO., LTD (“JUSDA”), a Foxconn subsidiary who is committed to provide leading supply chain solutions to customers through advanced technology, creates a joint venture to provide logistic solutions of transporting Liquefied Natural Gas (“LNG”) including using LNG ISO Container.
  • The newly formed JV will be dedicated to providing independent LNG logistics services to the industry and enable end users to purchase LNG around the globe.
  • JUSDA Energy has helped buyers in China to buy LNG directly from Canada and the first batch of LNG ISO Tanks will arrive in Shanghai in early October.

(September 25, 2018 - Hong Kong) IDG Energy Investment Limited (“IDG Energy Investment” or the “Company”, stock code: 00650.HK;) is pleased to announce that the Company, through one of its wholly-owned subsidiaries, has entered into the Agreement for a Joint Venture (the “Agreement”) to form Shanghai JUSDA Energy CO., LTD. (“JUSDA Energy” or “JV”), with JUSDA and the management team (the Management”). Pursuant to the Agreement, all parties agree to invest up to RMB500 million into the JV, of which the Company, JUSDA, and the Management agree to contribute 39%, 51%, and 10% respectively. JUSDA Energy's first batch of LNG ISO Tanks have departed from Vancouver, Canada and will arrive in Shanghai in early October.

 

 

JUSDA Energy will enable customers to buy and transport LNG globally with a strong emphasis on independency, reliability and cost-effectiveness

 

JUSDA Energy will initially focus on providing logistic services on LNG transportation using ISO containers. It has already helped buyers in China to purchase LNG directly from Canada for the first batch. This will demonstrate JUSDA Energy’s ability to provide independent, safe, and high-quality professional LNG logistics services. JUSDA Energy is well prepared to help China to source natural gas supply globally to meet rapidly growing need especially in the coming peak season in winter.

 

 

 

China will have a strong need of distributing LNG using LNG ISO Containers

 

China has become the world's second largest market for LNG imports. The coal-to-gas switching has resulted in a huge increase in demand for natural gas. In 2017, 39% of China's natural gas consumption comes from imports and LNG imports account for 57% of total natural gas imports, reaching 38 million tons. China's LNG liquid distribution reached 21.3 million tons in 2017 and will exceed 30 million tons in 2020 according to SIA Energy. JUSDA Energy believes ISO containers will be a safer and more cost-competitive way to transport LNG versus currently used trucking model. Last year, the National Development and Reform Commission, SASAC, and the Ministry of Transport collectively proposed policies to encourage LNG ISO tank multi-model transport.

Also, compared to traditional LNG terminal import model, LNG ISO tank could utilize existing port infrastructure to import LNG and serve as a temporary storage to quickly react to market imbalance. JUSDA Energy believes LNG ISO tank is an important supplement to traditional LNG import model.

Mr. LIU Zhihai, President of IDG Energy Investment, commented: “The formation of the JV reflects our synergy with and support from Foxconn, the second largest shareholder of IDG Energy Investment. JUSDA, as Foxconn’s sole supply chain enterprise, maintains a wide container transportation network and a strong bargaining position that will support JUSDA Energy’s logistics services and help to reduce costs. Likewise, as a global high-quality energy investor and asset manager, IDG Energy Investment has an abundant network of gas sources across the North America and the Asia Pacific Region, which will help JUSDA Energy scale rapidly.”

 

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