Two Qatari investment firms are acquiring stake at a Chinese petrochemical firm, Shandong Dongming Petrochemical Group, for $5 billion.
Qatar's Qatra for Investment & Development (QID Group) and Hamad Bin Suhaim Enterprises are the two Qatari investment firms acquiring the stake. The money will finance building 1,000 petrol stations across six provinces in China and a liquefied natural gas LNG terminal in Qinzhou.
Qatra for Investment and Development QID is listed in the Middle East Investors Directory with the code AP113
More details follows from Reuters
Qatar's Qatra for Investment & Development (QID Group) and Hamad Bin Suhaim Enterprises have signed an initial deal to acquire 49 percent of China's Shandong Dongming Petrochemical Group worth $5 billion, executives from the firms said on Monday.
The deal is expected to be finalised by the forth quarter of this year, with the cash used to finance a number of projects that Shandong is currently working on, Ibrahim El-Tinay, chief executive of QID, told reporters at a press conference in Doha.
"These projects will include building 1,000 petrol stations across six provinces in China and a liquefied natural gas (LNG) terminal with a 3 million ton per annum capacity in the region of Qinzhou," he said.
Once the acquisition deal is finalised then completion dates for these projects will be set, El-Tinay added.
How the $5 billion investment would be split between the two Qatari investors was not disclosed.
The stations will be built in a 300-kilometre radius of the company's Heze refinery in Shandong province in eastern China, which would provide a third of its output as supply to the stations, according to a joint statement from the three parties.
The LNG terminal will be built in the municipal region of Qinzhou in southern China and will include the construction of a terminal, jetty, regasification facilities and storage.
"Following the construction of this terminal, we hope that Qatar will have the priority in providing it with supplies," El-Tinay added.
China's natural gas demand grew by 5.6 percent last year to 178.6 billion cubic metres (bcm). Of that demand, 127.9 bcm was s
Previous Post: Two Bahrain investment firms acquired a network of US schools for $405 million
Next Post: Dubai Venture Capital firm Arzan VC announced its third investment of this year