Sino Energy buys stake in Chinese fuel retailer

Sino Energy International Holdings Group has acquired an indirect stake in Chinese natural gas and fuel retailer Fujian Xinjie Natural Gas Company.

Sino Energy has announced the acquisition of Wealthy Fortress Investments Corporation for HK$300 million (US$38.67m), a company that owns 16% of natural gas and gasoline marketer Fujian Xinjie, reports Natural Gas World.

Through this acquisition Sino Energy hopes to boost its energy and fuel related business in the Chinese market. Fujian Xinjie operates 9 fuel stations and has signed a strategic cooperation agreement with a PetroChina subsidiary to help set up 100 new gas stations.

“The acquisition gives the Group the opportunity to cooperate with Kunlun Energy Company, a subsidiary of PetroChina Company and a leading gas industry player in China, conducive to the expansion of its energy-related business,” said a representative of Sino Energy.

Fujian Xinjie is owned by three different entities: a subsidiary of Kunlun Energy Company with 58%, 26% by Fujian Deqing Investment, and 16% by Wealthy Fortress.