On 22 June 2008, the company signed an acquisition agreement to acquire a 60% stake in TGE Gas Investment SA from Gasfin Investment SA for EUR 20 mln. The company is to pay EUR 5 mln annually in 2009 and 2010 if TGE Gas Investment SA can reach certain performance goals in the two years following the acquisition. The company will thus become the largest shareholder of TGE Gas Investment SA. Analysts believe that the major target of the company is TGE GAS ENGINEERING GmbH, a wholly-owned subsidiary of TGE Gas Investment SA based in Bonn, Germany, which specializes in gas engineering.

With 25 years experience in independent general contracting, TGE Gas is mainly engaged in the storage and processing of liquified natural gas (LNG), liquified petroleum gas (LPG) and other petrochemical gases. Its services include big-scale LNG import & export terminals, medium-sized distribution and satellite station storage tank farms. As of 31 May 2008, total assets of TGE Gas were valued at EUR 37.88 mln while net assets were valued at EUR 35.85 mln.

The company has given high acclaim to TGE SA's good performance and the technology of its natural gas terminals and big-scale cryogenic storage tanks. It is also very optimistic about the growth potential of LNG storage and the transmission industry.

After the acquisition of Sanctum in Zhang Jiagang Port, Burg Industries and Enric, the company is now engaged in both the LNG and the petrochemical gas transmission industries. It is able to operate small-scale LNG satellite stations and LNG carriers. The company aspires to build TGE Gas as a leading and independent general contractor for large onshore LNG companies and other petrochemical gas projects.

Source: Securities Times

Date: 24 Jun 2008

CN01/MZ/AR/KM