IMW Industries, Ltd, a wholly owned subsidiary of Clean Energy Fuels Corp, announced a $167 million purchase contract for gas station equipment with China Gas Holding Ltd.

During the three-year contract, IMW anticipates supplying a suite of its CleanGAS Technology products and services - including up to 416 compressors, 186 dryers, 527 dispensers, and 387,500 liters of buffer storage - to China Gas' joint venture distribution partners for the construction of 310 new stations.

"We are very pleased to become a partner with China Gas," said Andrew Littlefair, president and CEO of Clean Energy. "It's a very exciting time in China as they move to natural gas. We believe we are one of the leaders in bringing natural gas for transportation to China."

"The spirit of China Gas is built on integrity, innovation and cooperation," said Liu Minghui, executive chairman, managing director and president of China Gas. "Our agreement today with IMW is an example of this spirit in practice."

"IMW is the world-leader in natural gas vehicle compression technologies and the ideal strategic partner for China Gas as we continue to meet the growing transportation needs of our customers in an environmentally sustainable manner," said Liu.

Littlefair said he has been to China several times, and he understands that the transition to natural gas is part of a government plan.

"We have seen the different natural gas plans that the Chinese government is talking about," Little fair said. "The China market has huge potential. The natural gas market in China is going to be very large."

China's 12th Five-Year Plan (2011-2015) has put a particular emphasis on cutting carbon emissions by reducing its use of coal and oil. Natural gas is becoming the preferred energy source to achieve that goal. The Chinese government has set an ambitious goal of increasing the share of natural gas in the energy mix from its current 4 percent to 10 percent by 2020, and cutting carbon emissions by 17 percent between 2011 and 2015 through closure of energy-intensive enterprises.

Littlefair said that the government of Canada has also endorsed the contract.

"It's a powerful combination," Littlefair said. "It's very important that you have the largest natural gas compressor provider in the US, supported by the government of Canada, now working with one of the largest distribution companies in China."

China Gas has secured financing for the transaction from Export Development Canada, which is expected to be utilized throughout the three-year agreement to help purchase the products and services under the purchase contract.

Initially, China Gas will use $5 million to purchase 29 compressors, which are expected to be delivered during the fourth quarter of 2013 and be used to construct the first 19 stations.

Littlefair said his company is looking forward to a long and bright relationship with China Gas.

"China Gas has a great reach in China," he said. "It has franchises in many cities and is developing a natural gas distribution system in 50 major cities, as well as building natural gas filling stations in those cities."

Clean Energy started to get involved in the natural gas transportation business in China a few years ago. It has already provided equipment and associated technologies for 124 stations. All equipment is manufactured at IMW's facility in Suzhou-Taicang, in east China's Jiangsu province.

"Over the last three years, we've built a manufacturing facility in Shanghai. So the compressors will be finished and put together and aggregated in Shanghai," Littlefair said.

"We are confident there is good economics associated with this," he said.

haidanhu12@chinadailyusa.com

(China Daily USA 09/27/2013 page10)