US-based Largo Vista Group has finalized a construction contract with the local government to develop a second liquid petroleum gas (LPG) pipeline project in Zunyi, China. The international energy company specializes in providing China with environmentally-friendly, cost effective energy alternatives, and is also working to supply petrochemicals to Vietnam.
“We are resolving problems with hook-up fees for LPG service from our first LPG pipeline project in Zunyi. This second pipeline project is more significant because it continues to position Largo Vista in a key area of the city that could allow us to secure control of a much larger market,” said Li Chuming, the company’s general manager for China.
LPG is an affordable, environmentally-sound alternative to the traditional use of coal or wood to cook and heat the home, and the Chinese government has made it a priority for the nation to improve its environment. A home served with LPG is considered a better place to live, and has higher prestige and value. Largo Vista’s first LPG project in Zunyi, which serves apartment blocks for government employees, was heralded by the city’s newspaper for “significantly enhancing our environmental protection”.
Mr Li went on to say: ” The significance of this second pipeline project includes the fact that it is located in an area of Zunyi that we can leverage into a much larger market. We are confident [that this project] will lead to more pipeline projects in Zunyi and elsewhere in the Guizhou Province, which has a population exceeding 40 million. Our contracts secure 40 years of exclusive rights to these pipelines, so that in the future when natural gas is brought into the country we will have in place pipelines that can also handle that commodity.”