CHINA Resources Gas Group (01193.HK) announced that it has entered into a co-operation agreement with Ningbo Urban Construction Planning and Investment Holding Company Limited (Ningbo Urban Construction) and Ningbo Xingguang Gas Group Company (Ningbo Xingguang Gas) on 26 December 2011 on converting Ningbo Xingguang Gas into a sino-foreign equity joint venture. Under the agreement, Ningbo Xingguang Gas will be owned by Ningbo Urban Construction and China Resources Gas as to 51% and 49% respectively.

The proposed total investment of the JV company is estimated to be up to RMB4 billion. China Resources Gas and Ningbo Urban Construction intend to complete all the necessary procedures for the establishment of the joint venture, including asset appraisal and approvals from the relevant PRC governmental or regulatory authorities, in or around June 2012.

The proposed formation of the joint venture is subject to the approvals and consents from the relevant PRC governmental authorities, which may or may not be forthcoming.

Ningbo Xingguang Gas is principally engaged in the construction and operation of the city piped gas facilities as well as the supply and sale of gas in Ningbo City, the PRC.