Operation of concession right in natural gas business


Operation of concession right in natural gas business is the first infrastructure sector that the Group entered. Natural gas, as a sustainable development clean energy, not only can significantly reduce sulfur dioxide and nitrogen oxide emissions, but also the important elements of urbanisation development and improvement of people’s livelihood, having obvious environmental benefits and social benefits. Recently, the PRC government has launched a series of air pollution control policies, to accelerate control management over high energy consumption and high pollution industry, and gradually promote the transformation and upgrade of traditional industries, promote the implementation of “coal to gas” project, orderly replacement of coal-fired boilers for industrial and commercial use and the implementation of natural gas price reform, and gradually stabilise and improve the natural gas supply so as to ensure the healthy development of the national clean energy industries. Natural gas in PRC will be widely used further, the natural gas industry will usher in a new round of rapid growth in the future and entered into a new stage in a faster and broader way. The Group will seize the opportunity, and leverage their strengths, and is actively seeking acquisition opportunities in the regions of huge development potential through a number of channels and networks, so that the Group’s natural gas business grows considerably. The Group has already acquired four nature gas companies successfully, and completed the disposal of its nature gas business in December 2017, which produced considerable return on investment for the Group.


Natural gas business projects:

Wunan Province Yongxing County – Yongxing Zhongtian Gas Company Limited
Total population covered: Approx. 670,000; 30-years exclusive operating concession rights
County prevailing activity: Refining and processing industry for silver and other precious metals
Yongxing Country plans to build a total of four industrial zones

Wunan Province Rucheng County – Rucheng Zhongtian Gas Company Limited
Total population covered: Approx. 400,000; 30-years exclusive operating concession rights
County prevailing activity: Minerals intensive processing, new materials, bio-pharmaceuticals, light manufacturing, high-tech electronics, machinery manufacturing and others
Yongxing Economic Development Zone has already expanded to 19.2 sq km

Guangxi Rongshui County – Rongshui Yaneng Natural Gas Enterprise Development Company Limited
Total population covered: Approx. 500,000; 30-years exclusive operating concession rights
Rongshui County has three industrial parks, namely Kangtian Bamboo & Wood Processing Park, Liudong Industrial Park and Hemu New Materials Industrial Park

Guangxi Xiangzhou County – Xiangzhou County Senzhong Gas Company Limited
Total population covered: Approx. 280,000; 30-years exclusive operating concession rights
The site selection is completed for the proposed LNG gate stations, which is located 6.3 km from "China-Myanmar" long distance pipeline
It is expected to connect to "China-Myanmar" long distance pipeline in 2017