Green Dragon Secures Second Gas Offtake Agreement in China

Green Dragon Gas Ltd Tuesday said it has signed a ten-year offtake agreement for the sale of coal-bed methane gas from its Shizhuang south and north blocks in Shanxi province in China in addition to its previous offtake agreement signed with PetroChina.

The agreement has been conducted through Green Dragon's wholly owned subsidiary, Zhengzhou Greka Gas Co with Shanxi International Energy Group, which is a joint venture between Shanxi International Energy Group and Sinopec.

No minimum amount has been agreed. The deal is due to start between the beginning of 2015 and the end of May next year, with the deal due to terminate on December 31, 2025. Prices will be determined annually.

"We are delighted to have successfully secured this long-term offtake agreement with such a significant partner. The agreement not only secures a major revenue stream for the company over the next decade, but also diversifies our options for monetising our gas," said Chairman Randeep Grewal.

Green Dragon shares were up 1.8% to 520.00 pence per share Tuesday morning.

（lse.co.uk  Edited by Topco)