Fortune Oil expands LNG operations

Shares in China-focused oil and gas group Fortune Oil jumped on Friday after the firm said it intends to build a liquefied natural gas (LNG) production plant in Xinyang.

Fortune will invest £20m and will take full ownership in the plant, which will liquefy natural gas supplied from the Xinyang Fortune Gas Co gas pipeline and deliver it to storage tanks via specialised road tankers.

"For Fortune Oil, this development represents a significant step forward in developing a fully integrated LNG business in China, broadening the company's unique technical expertise in linking upstream gas resources to downstream end-users," the firm said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Meanwhile, the group also agreed, with its partner for the Yangtze River Ship LNG Refuelling project, to install refuelling stations at their existing docks yards to refuel the first fleet of eighty ships which are currently under construction.

"Together with our shipping partner we are making rapid progress in introducing one of the largest LNG fuelled shipping fleets in the world and the associated LNG refuelling infrastructure," said Fortune Chief Executive Tee Kiam Poon.

By 15:24, shares were trading 6.04% up at 0.57p.

BC