CF Energy Corp. announced that the Company has signed a co-operative agreement with the State Power Investment Corporation Limited (the "SPIC") to construct a 7km natural gas pipeline to supply natural gas to its Xinhui Daze Gas Thermal Power Project in Daze, Xinhui, Jiangmen, Guangdong, the PRC ("the Daze Project"). The Daze Project is listed as one of the key natural gas cogeneration projects in China's "14th Five Year Plan" for energy development in the Jiangmen City and the "Action Plan for Building a New Power System to Promote High Quality Development of Electric Power in Guangdong Province".

The Daze Project plans to construct 2 x 50MW (F-class) gas steam combined cycle cogeneration units, with an expected annual power generation of 584 million kilowatt hours, an annual heating capacity of 108.4 x 104GJ, and an annual consumption of about 150 million Nm3 of natural gas. The natural gas for the project is planned to be connected from the Gonghe Valve Station, approximately 7.0km northeast of the plant site. CF Energy will invest in the construction of direct supply pipeline supporting facilities and the natural gas pipeline from the Gonghe Valve Station to the Xinhui Daze Thermal Power Plant.