Linc Energy (ASX: LNC) equities soared more than 37% this morning after announcing a joint venture to produce gas in China.
Brisbane-based Linc produces underground coal gasification (UGC) and gas-to-liquids (GTL) technologies.
It will work with Hong Kong-listed Golden Concord Holdings (GCL) to commercialise fuel using its technology in China, the company said in a statement to the ASX.
“China’s insatiable appetite for liquid fuels and gas presents Linc Energy and GCL with a unique opportunity,” Linc chief executive Peter Bond says.
As part of the deal, GCL will also take a 5% in Linc for $120 million.
“This most recent deal with GCL in China is the first stepping stone of many commercial opportunities I believe you will see Linc Energy produce over the months ahead,” Bond said.
Linc shares were up 26.64%, to $1.355 at noon.