Beijing, July 2, 2013
– IFC, a member of the World Bank Group, is investing $150 million in China’s leading gas distributor, ENN Energy Holdings Ltd., to reduce diesel use and carbon emissions by funding its construction of one of the world’s largest networks of stations supplying liquefied natural gas, a cheaper and more environmentally friendly fuel source.
China’s strong economic growth, industrialization, and urbanization over the last 30 years have lifted millions of people out of poverty, but also created new environmental challenges. One of them is air quality degradation, which is largely attributable to China’s heavy reliance on coal and oil.
Liquefied natural gas produces 30 percent fewer greenhouse gases than diesel and costs 40 percent less, but natural gas accounts for only 4 percent of China’s energy consumption. With IFC’s support, ENN Energy will build and operate 500 new liquefied natural gas fueling stations along China’s major transportation lines by 2015. This integrated network will allow truck and bus drivers to refuel their vehicles in 14 provinces and municipalities in China.
“Although the government has increased its support to liquefied natural gas fueling business, the sector is still constrained mainly because of the lack of facilities and funding,” said Wang Yasuo, ENN Energy’s chairman. “This new infrastructure will make liquefied natural gas more accessible for truck and long-haul bus operators in China.”
IFC’s financing to ENN Energy consists of a $75 million loan from its own account and a $75 million syndicated loan from ANZ (Australia and New Zealand Banking Group), Korea Development Bank, Korea’s Shinhan Bank, and Australia’s Wespac Banking Corp.
“This project will lower fuel costs and reduce greenhouse gas emissions, benefitting end users and society as a whole," said IFC Executive Vice President and Chief Executive Officer Jin-Yong Cai. "It will also be an example for other regions in China and other countries looking to benefit from greater access to liquefied natural gas.”
This is the fourth time IFC has partnered with ENN Energy over the past decade to help China reduce its reliance on coal and oil, and move towards cleaner energy sources.
ENN Energy is China’s leading gas distributor, serving 55.52 million people under 117 franchises across the country. The company invests and operates 330 liquefied natural gas fuelling stations in 71 cities as well as provides integrated energy supply solutions to its clients in 20 major cities.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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