FTO.L Share News (FTO)

China-focused oil and gas supplier Fortune Oil has acquired 51% of a pipeline supplying an industrial park which houses pottery companies. Pottery companies are high users of energy and gas consumption is expected to be 200m cubic metres a year. It will take time to build up but should reach that level by 2013.Fortune is paying £1m for 51% of Liaoning Jingrun Natural Gas Ltd. The company has a 30 year concession to build the pipeline for the industrial park in the county of Jianping, Liaoning Province. It should be completed next year. If Fortune receives dividends of more than 20% of the initial payment over the five years from when the pipeline is completed then it will have to pay more. The maximum additional consideration is £662,000.