Petrox Resources Corp. has entered into a co-operation framework agreement with Qingdao Sinoenergy Corporation of China (Qingdao Sinoenergy) and Asiafic Clean Energy Limited of Hong Kong (Asiafic) to establish an Alberta joint venture company, Gascana AB Energy Ltd. (Gascana AB), with the objective of which will be the construction of a LNG liquefaction plant in Alberta with a daily production capacity of 2,950 tonnes (150 MMCF). Asiafic is a wholly owned subsidiary of Qingdao Sinoenergy.
Initially, the Corporation will have a 10% equity interest in the joint venture and will be responsible for the implementation of the project, including obtaining the necessary regulatory approvals for the construction of the LNG plant, obtaining utility supplies, and other project planning and development activities. Asiafic will have 90% equity interest in the joint venture and will be responsible for obtaining the upstream natural gas supply and purchasing the land for the plant. Gascana AB will be responsible for the construction of the plant, applications to related authorities and engineering design of the plant.