July 3, 2025 -- The Hong Kong and China Gas Company Limited (Towngas) announced the establishment of a joint venture company, VENEX Holding Company Limited (VENEX), with Foran Energy Group Company Limited (Foran Energy), with each party holding a 50% stake. Simultaneously, Towngas is transferring its green methanol plant in Ordos, Inner Mongolia — Inner Mongolia ECO Coal Chemical Technology Company Limited — to VENEX, joining forces to expand green methanol production capacity and drive energy transformation.
Towngas possesses extensive experience in green methanol investment and operations, converting agricultural and forestry waste as well as scrap tyres into green methanol through proprietary technology. Since 2022, it has obtained ISCC EU and ISCC PLUS certifications for three consecutive years, making it the first company on the Chinese mainland to achieve both international certifications whilst maintaining large-scale green methanol production capacity.
Towngas and Foran Energy signed a framework cooperation agreement in 2024, agreeing to jointly establish an investment platform to invest in and construct green methanol production bases across the Chinese mainland, including the Inner Mongolia Autonomous Region, the Greater Bay Area, and Hainan Province, with a target annual production capacity of one million tonnes. The transfer of the green methanol plant to VENEX marks a significant step for both parties in achieving increased production capacity. VENEX will fully capitalise on the geographical advantages of the Greater Bay Area as a shipping hub, along with existing production, management, and operational experience, to strengthen and expand the green methanol industry.
At a glance
- Company
- The Hong Kong and China Gas Company Limited (Towngas)
- Announcement
- Partnership
- Location
- Ordos, Inner Mongolia
Key figures
- Towngas ownership of VENEX
- 50%
- Foran Energy ownership of VENEX
- 50%
- Target annual production capacity
- one million tonnes
Products and programs
The global shipping industry has a strong demand for green methanol. As a leading green fuel producer, Towngas is actively expanding cooperation with various sectors. Previously, Towngas signed a memorandum of understanding with the Transport and Logistics Bureau to support the HKSAR Government’s initiative to develop Hong Kong as a green maritime fuel bunkering and trading centre. Additionally, it has signed memoranda of understanding with multiple local and overseas shipping, trading, and bunkering partners to help develop Hong Kong’s green maritime fuel trading market and consolidate Hong Kong’s position as an international maritime centre.
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Press photo:
Photo 1:
Towngas’s green methanol production plant in Inner Mongolia is the first large-scale green methanol producer on the Chinese mainland to obtain both ISCC EU and ISCC PLUS international certifications.
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The Hong Kong and China Gas Company Limited
Ms Kara Kwong
Assistant Corporate Affairs Manager
Tel: 2963 3497 / 6698 3357
Email: [email protected]
Mr Julius Chow
Senior Corporate Affairs Officer
Tel: 2963 3471 / 6969 1360
Email: [email protected]
Media Enquiries
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Corporate Affairs Department
The Hong Kong and China Gas Company Limited
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Email: [email protected]
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In brief
The Hong Kong and China Gas Company Limited, known as Towngas, has formed VENEX Holding Company Limited with Foran Energy Group Company Limited. Each company holds a 50% stake in the venture. Towngas is transferring its green methanol plant in Ordos, Inner Mongolia, to VENEX as the partners seek to increase production capacity. Their 2024 framework agreement envisioned investment in production bases across the Chinese mainland, including Inner Mongolia, the Greater Bay Area and Hainan, with a target annual capacity of one million tonnes. Towngas says the plant uses technology to turn agricultural and forestry waste and scrap tyres into green methanol. The company also says it has held ISCC EU and ISCC PLUS certifications for three consecutive years. VENEX plans to use regional shipping links and the partners’ operating experience to develop the business.
Key takeaways
- Towngas and Foran Energy each hold a 50% stake in newly established VENEX.
- Towngas is transferring its Ordos green methanol plant to the joint venture.
- The partners’ stated target is annual production capacity of one million tonnes.
- Towngas says the plant converts agricultural and forestry waste and scrap tyres into green methanol.
Earlier from The Hong Kong and China Gas Company Limited (Towngas)
- Towngas signs green methanol MOUs with parties including TLB to support Hong Kong’s development as green maritime fuel centre
- Towngas supports HYAB Scheme on Corporate Summer Internship on the Mainland and Overseas for 5th consecutive year, providing diverse internship opportunities for tertiary students from Hong Kong and beyond
- Towngas and FTU launch Gas Guardian Care Network programme to enhance home safety for the elderly through gerontechnology
- Towngas and HKCS host rice dumpling-wrapping event for “elders with emigrant children” to connect them with the community and spread festive care
- Towngas’s green methanol becomes the first project to receive TÜV SÜD Carbon Footprint Certification
