Green Dragon Gas’s wholly owned subsidiary Zhengzhou Greka Gas Co. has signed a 10-year offtake agreement (the "Agreement") with Shanxi Guohua Energy Company Limited (Shanxi Guohua), a joint venture between Shanxi International Energy Group and Sinopec, for the sale of CBM gas from the Company's Shizhuang South and North blocks, in Shanxi Province. The Agreement is separate and in addition to the existing 20-year offtake agreement with PetroChina Huabei Oilfield Company Limited.

Key terms of the Agreement

Under the Agreement, the Company can sell gas from its GSS (Shizhuang South) and GSN (Shizhuang North) blocks to Shanxi Guohua's delivery point near the Guxian compression station, in Shanxi Province with pricing annually agreed and reviewed between the parties.

Tags: Green Dragon Gas Ltd.