China Yuchai Announces New Gas Engine Development Project

na Yuchai International Limited CYD announced today that its main operating subsidiary, Guangxi Yuchai Machinery Company Limited has inaugurated a new project to develop and produce a full portfolio of natural gas powered engines to complement its existing suite of diesel engines. Customers will be offered a greater choice of GYMCL's engines to meet their needs, especially in the large bus, mid- to heavy-duty truck, power generator and marine engine markets. In recent years, the policies of the Chinese government have encouraged energy conservation and emissions reduction. China's 12th Five-Year Plan targets natural gas to make up 8.3% of the primary energy mix by 2015, which represents approximately 9.2 trillion cubic feet of gas, or more than three times the consumption in 2008. The major oil companies, China National Petroleum Corporation, China Petrochemical Corporation and China National Offshore Oil Corporation are actively building pipelines and natural gas facilities to increase the use of natural gas. These firms currently operate five gas product facilities, have 10 plants under construction with another five gas facilities in the planning stages. Two pipelines linking western to eastern China are in operation with a third under construction which will provide approximately 72 billion cubic meters of natural gas into eastern China.