Mitsubishi Gas Chemical Entering into Natural Gas Business

According to fdi.gov.cn: According to Chengdu Business, a local newspaper, Japan’s Mitsubishi Gas Chemical recently reached an agreement with Sunwing Energy Limited to acquire from the latter a 10% share in the oil and gas prospecting and development project in Zitong District, Sichuan province. MGC reportedly intends to further increase the shareholding to 20%. Sunwing Energy Limited is a wholly foreign-owned subsidiary of the Canadian energy firm Ivanhoe Energy Incorporated, which mainly engages in oil and gas prospecting, extracting and production, and projects with high extracting rates and of synthetic oil. MGC is Japan’s largest natural gas, chemical and cutting-edge material provider. It registered a net sales income of 3.2 billion USD in 2004. Industry experts reckon the robust and increasing demand for natural gas in Sichuan plus its abundant natural gas reserves are the reasons that brought MGC over to the province.