Foran Energy invests in green methanol, seals gas deal with HKCG affiliate

Foran Energy Group (Foran Energy) is undertaking a multi-faceted expansion, including a capital increase for subsidiaries and associate companies. This involves an RMB31,000 million investment into Folsom Green Energy Co., Ltd. and VENEX Holding Company Limited, with Hong Kong & China Gas Co., Ltd. (HKCG) as a co-investor, to develop a 300,000 tons/year green methanol project in Foshan. This initiative aligns with national "dual carbon" goals and aims to secure a competitive position in the green methanol market.

Simultaneously, Foran Energy's subsidiary, Wuqiang Zhongshun Natural Gas Co., Ltd., plans to sign a gas supply cooperation agreement with Hebei Natural Gas Co., Ltd., a HKCG affiliate. This agreement is expected to optimize Wuqiang Zhongshun's gas source structure, reduce procurement costs, and enhance supply security by prioritizing the purchase of at least 1,000 million cubic meters per contract year from Hebei Natural Gas.

Additionally, Foran Energy intends to utilize up to $10,000 million of its idle capital for foreign exchange derivative transactions to enhance capital efficiency. These strategic moves, approved by the board and pending shareholder endorsement, underscore Foran Energy's commitment to sustainable growth and operational efficiency. The company also announced the resignation of two directors and the election of a new non-independent director, Zhou Hengxiang.