Thursday 2011-08-25  10:15 Publisher: CapitalVue
August 25 -- Zhejiang Haiyue (600387.SH) said in a filing that it has signed a cooperation agreement with PetroChina’s Zhejiang Sales Company on August 23 to cooperate on refined oil storage programs, reports National Business Daily.

The programs consist of the operation of five gas stations and a refined oil storage terminal in Zhejiang Province. Haiyuan said it would lease the five gas stations to PetroChina Zhejiang for daily operation and provide turnover storage services with its refined oil storage terminal to the latter.

Lease period of the five stations is five years, with unconditional extension for 20 more years after expiration of the lease period. Total rent for the 25 years’ lease is 235 million yuan, which will be paid one-off by PetroChina Zhejiang. PetroChina Zhejiang agreed to maintain a 29 yuan per ton price difference between oil purchases and sales.

The two parties will jointly build a 1.2 million-square meter refined oil storage terminal.

Apart from these programs, PetroChina Zhejiang will provide 500,000-800,000 tons of LPG material and 500,000 cubic meters of natural gas to Haiyue per year at spot market prices.