China Gas Holdings Ltd<0384>, engaged in sales of gas appliances and gas supply, as well as in property investments, signed a contract with Chinese People Holdings Co Ltd<0681> to purchase a 49% stake in a Fujian Province-based gas firm for RMB 325 million, sources reported.

China Gas will gain gas supply rights in 28 Chinese cities from the gas firm, which has a registered capital of RMB 220 million. At present, China Gas owns exclusive gas supply rights in 72 cities of the country.

Liu Minghui, president of China Gas, said that it hopes to sell 500 million cubic meters of gas and to record sales revenue of RMB 1.8 billion per year in the next three to four years.