Apr. 23, 2008 (China Knowledge) - China Gas-SK Energy Holdings Ltd, a 50:50 joint venture between South Korea-based SK E&S Co, a unit of the nation's top refiner SK Energy, and China Gas Holdings Ltd<384>, spent US$10 million to buy a stake in a local gas distributor in eastern China, according to sources.

The venture, which started operation in mid-March last year, acquired a 50% stake in Jinhua City Jiran Piped Gas Co, which has a 90% share in the piped gas market in the city with sales revenue of RMB 6.5 million in 2007.

This is the second time that the joint venture invested in a city-level gas company in China. It has inked an agreement to buy 50% of Taizhou Gas Co for US$9.15 million in August.

So far, China Gas has invested in gas projects in 65 Chinese cities.