On July 5, 2016, Yang Hui, director of Xinxian county development and Reform Commission of Xinyang City, Henan Province, signed the new County Township pipeline natural gas franchise agreement with Chongqing Shengyan Energy Co., Ltd. on behalf of the new County People's government. This indicates that our company has officially obtained the 30-year franchise rights of more than 65000 households in 17 towns and streets such as Xinji Town, Shawo town and wuchenhe town of Xinxian County, and many large pharmaceutical production enterprises. At the same time, it indicates that our company has the ability to participate in formal bidding independently.
The acquisition of franchise rights for township projects in Xinxian county can be described as a lot of trouble. Since the end of 2015, the Ministry of investment has been involved in the bidding of the new county government. Through three rounds of bidding and layer by layer screening of expert professional evaluation, the project was opened at Xinyang public resources trading center on May 9, 2016, and Shengyan energy was determined to be the only bid winner of the project. After many times of communication and coordination with the new county development and Reform Commission, it has improved the modification of the franchise agreement four times, and finally led to the signing of the franchise agreement.
On July 8, 2016, Xinxian Shengyan Natural Gas Co., Ltd., the local company of the project, was officially established! The establishment of Xinxian Shengyan company has also laid a solid foundation for Shengyan energy company to expand the Henan market.
Taking the opportunity of obtaining the franchise right of villages and towns in Xinxian county and adhering to the purpose of "expanding the gas market in foreign towns" of Shengyan energy investment department, the investment department will grasp China's new energy development environment, meet new challenges, seize opportunities and write a new chapter of Shengyan energy.