Zhonghua Gas (SEHK: 08246) has announced the signing of a joint venture agreement with Vang Vieng Development on June 30, 2026.
Upon its establishment, the joint venture will be 80% owned by Zhonghua Gas and 20% by Vang Vieng Development.
The primary business scope for the joint venture group includes the development of fuel and natural gas supply networks within a designated concession area.
It will also involve constructing related infrastructure such as fueling stations and gas pipelines.
Furthermore, the group plans to operate a digital currency banking and related payment systems business in Laos, alongside other activities authorized under the Vang Vieng project concession agreement.
Following the submission of a feasibility study report to Laos' Ministry of Industry and Commerce for review and approval, the group has been actively advancing its proposed investment in developing fuel and natural gas supply networks in the country.
This initiative is considered crucial due to Laos' insufficient national fuel reserves and the nascent stage of its natural gas market.
Building these supply networks within the concession area is expected to play a vital role in providing a reliable energy source and strengthening the country's power supply.
This project marks a significant milestone for the group's expansion in Laos and will strengthen its position in negotiating a concession agreement for an integrated fuel and gas supply network in the country.
Additionally, the joint venture group intends to apply for licenses related to digital currency banking and payment systems in Laos.
This move is anticipated to facilitate the group's transformation from a traditional asset-intensive energy operator into a technology-driven energy enterprise.
In this context, Rui Feng, the controlling shareholder of Vang Vieng Development, has entered into a concession agreement with Laos' Ministry of Planning and Investment.
This agreement grants, among other rights, the concession to establish a bank or financial institution within the specified area.