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 Kryopak LNG plants for Vehicles and Base Load
Pictures of Busses and Engines HERE    
The Feasibility Study of LNG plant, vehicle conversion plant, 6 refueling stations & Taibaishan Project.
Agreement with Xian Public Transit 

Agreement in Chinese Page 1

Agreement page 2 in Chinese 

Agreement page 3 in Chinese 
June 16, 2003
The Feasibility Study Of Lng Plant, Vehicle Conversion Plant, 6 Refueling Stations & Taibaishan Project.
Equipment/total cost depreciation per year/# years (US$ in Million)
 1. 60,000 gpd LNG Plant      9.0/10.0 0.6/15 years
 2. Conversion Plant                1.5/2.0   0.3/ 5 years
 (1000 busses @) 1,500)
 3. Transportation Co.                      1.2 0.4/3 years
 (10 Trailers (@ 0.12)
 4. 6 x Refueling Stations               2.4 0.24/10 years
 5. Taibaishan refueling          1.25+0.4 0.25/5 years
Station & Transportation Company
50 mid bus  @                     025   1.25
6. Miscellaneous                            0.75
Total Investment                          18.0 1.79/years
LNG Cost Analysis: -
1. Plant Cost: - Maintenance  Y 1,700,000.
 - Labor & Administration          2,500,000
 - Electricity                                  857,000
 - Fuel Gas                                5,680,000
Total CRY 10,737,000 or CRY O.13/liter
2. Process Gas Cost:
50,000,000 M3 (4 CRY O.74 CRY  37,000,000 or CRY 0.46/liter
3. Transportation Cost to Xian (1,400 km return)
 LNG trailer with capacity 45,000 liters
 - Toll fees        CRY 900. -
 - Drivers          CRY 400. -
 - Fuel (LNG)   CRY 500. -
 840 liters @ 0.6/1
 - Maintenance  CRY 400. -
 Total CRY CRY 2,200.- or 0.05/liter
 LNG Cost per liter delivered to Xian  CRY 0.64
 1. Sales of 80,000,000 liters                      CRY 112,000,000
 CRY 1.40/liter
 2. Costs:
 - 80,000,000 @                0.64/1                      - 51,200,000
 - Overhead for refueling Stations & sales tax
     @ Y 0.10/liter     8,000,000
 - First Year equipment depreciation                   - 15,000,000
 3. Gross profit from sales of LNG                          37,800,000
 4. Gross profit from operation of mid-busses          20,000,000
 in Taibaishan
 5. Total Profit before tax & interest payment CRY 57,800,000
Or        US$ 7,006,000

If LNG selling price is CRY 2.05/M3
= US$0.712/US gallon as per Kryopak calculation, then
US$ 0.712/US gallon = US$ 0.188/liter or CRY 1.55/liter
 1. Sales of 80,000,000 liters @      1.55/L        CRY 124,000,000
 2, Less total cost                                                CRY 74,200,000
 3. Gross profit from sales of LNG                      CRY 49,800,000
 4. Gross profit from Taibaishan                          CRY 20,000,000
5. Total Profit before tax & interest payment       CRY 69,800,000
                                                                        Or US$ 8,460,000 
NB. The profit tax for the First and Second years are 0%
From Third to Fifth years, the tax is 15%.

The Xian Public Transit (referred as Party A) and the Shaanxi Intercontinental LNG Co., Ltd (referred as Party B), after friendly discussion & negotiation, have reached the following agreement of converting 1000 busses into LNG fueled busses.

Party A: Xian Public Transit Corporation
Party B: Shaanxi Intercontinental LNG Co., Ltd

1. Party A & B agree that Party A will provide to Party B two busses, one powered by gasoline & one powered by diesel engine.
Party B will convert them into LNG fueled busses for testing & to obtain the Certificate of Production Permission for the rest of the busses.

2. Based on the success of conversion above two busses, Party B will apply for the license of LNG Conversion Qualification and to build the LNG Conversion Plant.

3. Party B should have a contingence plan for the supply of LNG to Party A in case no supply of LNG from Yulin Plant.
All the extra cost incurred will be borne by Party B.

4. Party B will help Party A to apply for any special policies or subsidies available from Municipal Government.

5. Party B will invest RMY 5 million (US$ 600,000) to construct a LNG Refueling Station when starting bus conversion.

Party A will select a location and provide a site for constructing the refueling station at no cost to Party B.
Party B has the full right to operate the refueling station for 10 years.

6. Party B agrees that the selling price of LNG will not be higher than the price of CNG set by Municipal Government for Xian Transit 
(Current CNG price is RMY 2.05/M3).
The price of LNG will follow the market price of CNG.

7. Those busses converted into LNG fuel by Party B will only allow using LNG supplied by Party B.

8. Construction of the first LNG refueling station & mass conversion of busses will commence on March 1, 2004.
There will be sufficient number of LNG fueled busses to use LNG when Yulin LNG Plant starts production on September 1, 2004.

Party A: Xian Public Transit Corporation
Stamp & signature

Party B: Shaanxi Int'l LNG Co., Ltd Stamp & Signature 2003.6.2

Agreement in Chinese 

Agreement page 2 in Chinese 

Agreement page 3 in Chinese