Piped-gas operator China Gas Holdings has entered into a long-term loan facility of up to US$450 million with the Asian Development Bank (ADB). Set under an A+B loan structure, the A loan is a US$150 million 10-year low-interest special loan. The group is to raise the B loan of a total of US$300 million at an appropriate time according to its business development needs and financial market conditions. This is the third loan secured with ADB after China Gas' previous financing facilities in 2006 and 2010.

China Gas will use the proceeds to develop its gas refilling station projects for vehicles and vessels, i.e., constructing compressed natural gas (CNG) and liquefied natural gas (LNG) refilling stations in China for provision of CNG/LNG services to vehicles and vessels. Natural gas is used as a sustainable clean energy can largely reduce the emissions of sulfur dioxide and nitrogen oxide, making it a high-quality substitute fuel for vehicles and vessels with collateral environmental and social benefits. To date, China Gas has built more than 450 refilling gas stations for vehicles and vessels across China with more than 1,000 such stations expected to be constructed by 2017.

Zhou Si, chairman of the group, said, "The Asian Development Bank has rendered support to the development of China Gas over many years, not only for capital and to aid corporate governance, but also providing valuable opinions and recommendations for enhancing our environmental protection measures and fulfilling our corporate social responsibility. We will continue our priority on environmental protection and our commitment to improving the social environment and capture the opportunities presented by supportive national policies such as 'oil-to-gas' and haze prevention and control in order to constantly drive the reform of industry and development of clean energy in China."