Natural Gas Sale and Purchase Intention Agreement
Exhibit
99.3
China
Petroleum and Chemical Corporation Natural Gas Branch
Hubei
Gather Energy Gas Co., Ltd.
With
respect that China Petroleum and Chemical Corporation (SINOPEC) will start
to
construct natural gas pipeline of the “Deliver the Natural Gas in Sichuan to
East Part” project, whose trunk line is from the initial station of Puguang Gas
Field in Xuanhan County, Sichuan Province to the final station in Shanghai
through Chongqing City (Liangping and Zhongxian, etc.), Hubei Province (Enshi,
Yichang, Wuhan, Huangshi and Huangmei, etc.), Anhui Province (Anqing, Chizhou
and Xuancheng, etc.), Zhejiang Province (Huzhou and Jiaxing, etc.) and Jiangsu
Province. The length of the trunk line is about 1,702km, the diameter is
1,016mm, the designed capacity is 12 billion m3/year,
and the designed pressure is 10MPa. It is planned to be completed in December
2008;
With
respect that as a natural gas seller authorized by Municipal Government of
Huanggang City, Hubei Province, Hubei Gather Energy Gas Co., Ltd. has had
certain quantity of customers, and it will have the conditions to receive the
natural gas delivered through the pipeline in 2009.
Upon
the
principle of equal, voluntary, fair, legal and honest and friendly consultation,
the both parties come to the intention agreement on sale and purchase of the
natural gas delivered through the pipeline.
1.
Stating Date
It
is
temporarily a random day from January 1, 2009 to June 30, 2009.
2.
Volume
of Gas
From
the
starting date, the volume of the initial period is 50 million m3/year,
and with yearly increment, the final volume should not exceed 200 million
m3/year.
3.
Price
According
to economic appraisal on feasibility research stage, the average price of each
substation along the pipeline should not be lower than CNY 1.60/m3
(including storage expenses), and such price should be adjusted according to
relevant state policies, which should be confirmed in the annual Natural Gas
Sale and Purchase Contract.
4.
Quality
The
natural gas should comply with the Class II Natural Gas regulated by the State
Standard of Natural Gas (GB17820-1999) of the People’s Republic of
China.
5.
Others
5.1
If
the natural gas development strategy of the state or SINOPEC is adjusted,
relevant articles of this intention agreement shall become invalid.
5.2
This
intention agreement shall not have restrictions to the annual Natural Gas Sale
and Purchase Contract signed by both parties.
5.3
This
intention agreement is in four original copies, and each party shall keep two
of
them.
China
Petroleum and Chemical Corporation Natural Gas Branch (Sealed)
Authorized
Representative: Xx Xxxxx
General
Manager of China Petroleum and Chemical Corporation Natural Gas
Branch
Date:
May
14, 2007
Hubei
Gather Energy Gas Co., Ltd. (Sealed)
Authorized
Representative: Xxxx Xxxxxxxx
Chairman
of Hubei Gather Energy Gas Co., Ltd.
