Chilliwack’s IMW Industries, a subsidiary of U.S.-based Clean Energy Fuels Corp. (NASDAQ:CLNE), announced on August 29 a purchase agreement with China Gas Holdings Ltd. (SEHK: 384) to supply 416 natural gas compressors for compressed natural gas stations in China.

China Gas expects to build up to 310 compressed natural gas stations.

The three-year deal is worth up to US$176 million.

In addition to the natural gas compressors, IMW anticipates providing China Gas with 186 dryers, 527 dispensers and 387,500 litres of buffer storage.

All equipment is manufactured at IMW’s facility located in Suzhou-Taicang, China.

China Gas secured financing for the purchase agreement through Export Development Canada. An initial $5 million has already been spent on 29 natural gas compressors. Delivery of the compressors is expected in 2013’s fourth quarter. The 29 compressors will be used to in the first 19 stations.