The Hong Kong and China Gas Company (Towngas) signed an agreement this week to build a 400,000 tonne/year DME plant at Chongqing in southwest China. Hong Kong-listed Towngas will invest 3bn yuan($439m) on the DME plant in Wansheng district of Chongqing, one of the largest port cities in southwestern China. The project is expected to generate more than 1bn yuan in sales once it starts operation.