Hong Kong & China Gas (Towngas) may take part in operating four liquefied natural gas (LNG) terminals in the Mainland, entailing an initial investment of 1.2 billion yuan (150 million US dollars), The Standard reported. Towngas has poured 3.8 billion yuan into 40 gas transmission and distribution projects in the mainland. They could account for at least one-fifth of revenue in the medium term if the firm could secure sufficient gas supplies, said the paper. Credit Suisse analyst Angello Chan expects Towngas to sign gas-supply contracts in Xian, Tongling, Yuhang, and Suzhou before year-end and make more acquisitions from a potential list of 32 gas and 18 water schemes. Merrill Lynch, in a report out last month, said Towngas offered a clear and coherent expansion strategy for China. "Towngas looks poised to benefit from strong demand for natural gas, the energy source China is very keen to tap," wrote analyst David Yip, adding that its water projects were also growth opportunities.