(1) Increase in sales volume of natural gas as compared with 2019 During the Reporting Period, the Group recorded an increase in its sales volume of natural gas thanks to the continuous implementation of environmental protection policies and the policy of “replacing coal by gas”, and realized a gas sales volume of 3,525 million cubic meters for the year, representing an increase of 8.90% as compared with 2019, of which the wholesale volume amounted to 2,091 million cubic meters, representing an increase of 4.39% as compared with 2019 and accounting for 59.3% of total sales volume; the retail sales volume amounted to 1,351 million cubic meters, representing an increase of 19.02% as compared with 2019 and accounting for 38.3% of total sales volume; the sales volume of CNG amounted to 70 million cubic meters, representing a decrease of 28.41% as compared with 2019 and accounting for 2.0% of total sales volume; the sales volume of LNG amounted to 13 million cubic meters, representing an increase of 1,170.73% as compared with 2019 and accounting for 0.4% of total sales volume.
(2) Active promotion of the construction of infrastructural projects The Group’s natural gas pipelines increased by 1,333.11 kilometers in 2020. As at 31 December 2020, the Group operated pipelines with a total of 6,501.77 kilometers, including 958.26 kilometers of long-distance transmission pipelines and 5,543.51 kilometers of city gas pipelines; and the Group operated a total of 22 distribution stations and 18 gate stations. During the Reporting Period, the main body of the Zanhuang County Sub-high Pressure Natural Gas Pipeline Project (贊皇縣次高壓天然氣管道工程) was completed; the Zhuozhou-Yongqing Transmission Pipeline Project (涿州－永清輸氣管道工程) and the Connection Line Project of Sinopec Erdos-Anping-Cangzhou Gas Pipeline and Beijing-Handan Gas Pipeline (中石化鄂安滄輸氣管道與京邯輸氣管道連接線項 目) commenced construction and was expected to meet the production conditions in 2021; the “Jingshihan” Dual Track Gas Pipeline Project (“京石邯”輸氣管道複線工程) commenced construction.
(3) Continuous exploration of markets for natural gas During the Reporting Period, leveraging on its newly operating pipelines, the Group vigorously developed its end user base of natural gas and resulted in an increase of 85,927 customers. As at 31 December 2020, the Group had an aggregate of 430,854 customers. During the Reporting Period, the Group steadily promoted the development of regional markets. The Centra Hebei Pipeline Network Phase IV Project (冀中管網四期工程), the South Baoding Connection Line Project of Sinopec Erdos-Anping-Cangzhou Gas Pipeline and Beijing-Handan Pipeline (中石化鄂安滄與京邯線保定南部聯絡線項 目) and the Connection Line Project of Sinopec Erdos-Anping-Cangzhou Luquan Gas Transmission Station and the Luquan Station of the Company (中石化鄂安滄鹿泉 輸氣站與公司鹿泉站連接線項目) were approved by Hebei Provincial Development and Reform Commission. The Group completed the acquisition of 30% equity interest in Hengshui Honghua Gas Co., Ltd. (衡水鴻華燃氣有限公司) and participated in the investment in and construction of the Erdos-Anping-Cangzhou Hengshui Branch Natural Gas Pipeline Project (鄂安滄衡水支線天然氣管道工程). For the Tangshan LNG Project, the 3# wharf commenced construction; the construction of 4 external storage tanks of the receiving station project was basically completed, of which the air pressure lifting of 3# and 4# storage tanks was completed. For the outbound pipeline Caofeidian-Baodi section, crossing projects were completed for 11 directional drills including Nachao River, one railway and 8 general highways. A total of 59.65 kilometers of pipes were laid and 41.61 kilometers were welded. For the outbound pipeline Baodi-Yongqing section, crossing projects were completed for 7 directional drills including Yongding River, 4 railways, 4 expressways and 8 general highways and rivers. A total of 60.60 kilometers of pipes were laid and 53.53 kilometers were welded.
(4) Gradual improvement in the transmission network During the Reporting Period, the Group actively participated in the construction of transmission pipelines and further improved its transmission network. The Connection Line Project of Sinopec Erdos-Anping-Cangzhou Gas Pipeline and Beijing-Handan Gas Pipeline (中石化鄂安滄輸氣管道與京邯輸氣管道連接線項目) and the “Jingshihan” Dual Track Gas Pipeline Project (“京石邯”輸氣管道複線工程) commenced construction, and the pre-construction preparation work was carried out for the Qinhuangdao-Fengnan Gas Pipeline Project (秦皇島－豐南輸氣管道工程) and the Centra Hebei Pipeline Network Phase IV Project (冀中管網四期工程).
(5) Development of CNG and LNG businesses in a steady manner During the Reporting Period, the Group developed its CNG and LNG businesses in a steady manner and added one operating CNG secondary filling station. As at 31 December 2020, the Group operated a total of 7 CNG primary filling stations, 7 CNG secondary filling stations and 3 LNG refilling stations.
(6) Innovation-driven development Hebei Natural Gas, a subsidiary of the Group, keeps up with the development of the times and actively explores new technologies and new business forms. It continuously transforms rich operational experience into intelligent operational capability, and accelerates the process of “smart gas” with the objective of data convergence and intelligent decision-making. In 2020, it started to carry out the renovation of unmanned stations and the construction of automatic distribution control system. With the renovation of old station equipment and systems and the construction of data center, it will build a “smart brain” of the pipeline network, gradually realize unmanned operation of long-distance pipeline stations, and further improve the automation and modernization level of stations. It seized the opportunities for new infrastructure development by laying accompanying optical cables for new long-distance pipelines in view of the 5G information development trend to make early preparations informatization.