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
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.
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.