This is what's been keeping New Ocean Energy busy

NOE is set to supply 2.2 to 2.6m bottled LPG to distributors.

According to Sunwah Kingsway, having successfully integrating the LPG filling stations in Guangzhou into NOE, the company plans to enter another lucrative market by supplying bottled LPG to Hong Kong.

Here's more from Sunwah Kingsway:

According to statistics published by the Electrical and Mechanical Services Department of Hong Kong, the household demand of LPG in Hong Kong in 2009 amounted to about 110k tons.

Among that, majority of the usage is in the form of bottled LPG. Currently, there are close to 200 approved bottled LPG distributors in Hong Kong. These distributors are sourcing from 4 LPG suppliers namely Concord, Esso/Mobil, Shell and, Sinopec.

NOE has been contacting these distributors during the past two years and build a ready network of some 30-35k tons of annual demand. This volume translate to about 2.2 to 2.6m bottles of LPG NOE plans to begin supplying bottled LPG to its network of distributors as soon as Jan 2013.

As of now, most of the logistics arrangement is already in place except for a transport depot in Hong Kong. The structure is still pending for Fire Department’s approval. In light of the tight schedule, NOE has already rented a qualified depot to facilitate the statutory storage requirement.

In order to quickly capture a significant market share, NOE will offer higher rebate per bottle for the distributors. Unlike the incumbents that are having most of their bottling and storage facilities in Hong Kong, NOE is leveraging its Zhuhai terminal and its bottling plant in Shenzhen to reduce the logistic costs.

Savings from such low cost supply chain allows NOE to increase the rebate to distributors without eating into its own gas margin. We believe the incentive is straight forward and be attractive to the local distributors given the tough business environment in Hong Kong.