TL NATURAL GAS (08536) announced that on July 11, 2024, its indirect wholly-owned subsidiary Hubei Tonglin Petroleum and Natural Gas Service Co., Ltd. signed a memorandum of understanding with Jingmen Jinhao Li Natural Gas Co., Ltd. (the target company), proposing to invest in the target company by subscribing to a portion (51% or more) of its shares.
The target company is a limited liability company registered in Jingmen City, Hubei Province, China. It is mainly engaged in natural gas pipeline construction, used to transport natural gas from production facilities or gas storage facilities to distribution points such as residential areas, commercial areas, and industrial areas.
The group is mainly engaged in the sale of compressed natural gas and liquefied natural gas in China and provides transportation services. The directors believe that investing in the target company will enable the group to reach more pipelines and infrastructure related to natural gas transportation and bring more income to the group by providing transportation services.