BEIJING, May 9 (Xinhua) -- Shanghai Petroleum and Natural Gas Exchange (SHPGX), a national energy trading center, signed a strategic cooperation agreement with Shanghai Dazhong Public Utilities (Group) Co., Ltd. (600635.SH) in Shanghai on Friday.
Under the agreement, the SHPGX is willing to promote communication and negotiation between its largest shareholder and Dazhong Public Utilities, strive to promote equity transfer, and assist the company in becoming a new shareholder and strategic investor of the Exchange. The SHPGX will also provide professional, market-oriented, and international trading services and financial services for the listed company to meet its needs of oil and gas trade.
The Dazhong Public Utilities will support the SHPGX to expand the scale of natural gas and oil products trading, shares information on gas source procurement in the international market, and introduce the international natural gas suppliers to trade on the trading platform of the SHPGX.
The SHPGX was established in March 2015, with stakeholders including Sinopec, CNPC and CNOOC. Trial operations started in July 2015. It officially opened for business in November 2016.
Dazhong Public Utilities is currently the sole pipeline gas supplier in Shanghai's Southern Puxi District and in Nantong, Jiangsu Province, where it owns and maintains more than 6,500 km and 2,200 km of underground pipelines respectively, according to its official website. (Edited by Hu Pingchao with Xinhua Silk Road, email@example.com)