China Oil and Gas Group Limited (sehk:0603) expressed the People's Government of Yutai County in Shandong Province agreed to hand over approved Shanghai Baogang (Yutai) coal gas project to China Oil And Gas Group (Asia) Limited, a wholly-owned subsidiary of China Oil and Gas Group for investment and construction.

According to the agreement, China Oil And Gas Group (Asia) Ltd. signed an asset acquisition agreement with Yutai County Xinda Economic Development and Investment Co., Ltd. (transliteration), which is a independent corporation under umbrella of the People's Government of Yutai County. China Oil And Gas Group (Asia) Ltd. acquires all assets of the coal gas project from the other at a price of roughly CNY 114 million. The agreement and the asset acquisition agreement are of correlation dependence.

After completing the acquisition, China Oil and Gas Group is predicted to invest about HKD 1 billion totally and the final investment will be examined and approved by the government. Besides, the investment includes a coke oven gas LNG plant.