Towngas invests in Xian

Hong Kong and China Gas (Towngas) announced the signing of preliminary agreements to invest US$109 million in natural gas projects in the central city of Xian, Shaanxi province. The wholly owned projects include the construction of an integrated system of air conditioning, electricity and piped gas for a high-technology development zone, as well as construction of a liquefied petroleum gas (LPG) terminal, the South China Morning Post reported. Towngas said feasibility studies for the two projects would begin shortly with operations beginning in 2005. The company added that it expected to see a 14-15% return on its investment.