(1) Increase in sales volume of natural gas as compared with the same period of 2022

During the Reporting Period, the Group’s total transmission volume of the natural gas business was 5.114 billion cubic meters, representing an increase of 13.63% as compared with the same period of 2022, among which, the sales volume amounted to 4.503 billion cubic meters, representing an increase of 15.93% as compared with the same period of 2022, including (i) wholesale volume of 1.962 billion cubic meters, representing a rise of 0.26% as compared with the same period of 2022; (ii) retail sales volume of 2.000 billion cubic meters, representing an increase of 8.78% as compared with the same period of 2022; (iii) sales volume of CNG of 85 million cubic meters, representing an increase of 1.24% as compared with the same period of 2022; (iv) LNG sales of 456 million cubic meters, representing an increase of 9,585.78% as compared with the same period of 2022 mainly due to the increase in sales of imported LNG as a result of the operation of the Tangshan LNG Project; the gas transmission volume amounted to 611 million cubic meters, representing a decrease of 0.87% as compared with the same period of 2022.

(2) Active promotion of the construction of infrastructural projects

During the Reporting Period, the first phase of the LNG Storage Peak Capacity Station for the Beijing-Handan Line was put into operation. Cangzhou Southeast Natural Gas (Erdos-Anping-Cangzhou gas source) Utilisation Project met the conditions for production. Projects including the Central Hebei Pipeline Network Phase IV Project, the Qinhuangdao-Fengnan coastal Gas transmission Pipeline Project, the South Baoding Connection Line Project, and the Luquan-Jingxing Gas Transmission Pipeline Project progressed smoothly.

The Tangshan LNG Phase I Terminal Project and its Supporting Wharf Project and the main lines of the CaofeidianBaodi section and the Baodi-Yongqing section of the outbound pipeline projects were put into operation. In terms of Phase II projects of the Tangshan LNG Project for Tanks 1#, 2#, 5# and 6#, the hydraulic testing on two tanks was completed while the welding for two tanks was accomplished. Among projects for Tanks 9#, 10#, 15# and 16#, air pressure lifting for two tanks was completed and wall construction was completed for two tanks with completion of 20% of the warm seawater utilization project water pipeline.

(3) Continuing to develop the natural gas end-user market

During the Reporting Period, the Group, relying on the operation of new pipelines, made great efforts to acquire natural gas end users, and its newly added users hit 88,036. As of 31 December 2023, the Group had an aggregate of 647,084 users.

During the Reporting Period, it completed the acquisition of a 60% equity interest in Gaoyi Fengcheng Natural Gas Co., Ltd., expanding the operation to the gas market within the jurisdiction of Gaoyi County.

(4) Further improving transmission network

The Group’s natural gas pipelines increased by 1,394.34 kilometers in 2023. As at 31 December 2023, the Group operated pipelines of a total of 9,741.57 kilometers, including 1,546.54 kilometers of long-distance transmission pipelines and 8,195.03 kilometers of city gas pipelines. It operated a total of 34 distribution stations and 20 gate stations.

During the Reporting Period, the Group actively participated in the construction of transmission pipelines and made effort in improving its midstream transmission network. The Tangshan LNG Outbound Pipeline and ChinaRussia East-route Interconnection Project, and the Tangshan LNG Outbound Double Track Pipeline Project have received approval. The Tangshan Port Caofeidian No.2 Port Area LNG Berth Project has received a letter for preliminary work from the Hebei Development and Reform Commission. The tender for the relocation project of the natural gas pipeline of the Beijing-Handan Line (Luancheng section) was completed, and preparations were made before the commencement of the construction. Approval has been obtained for the Bafangmen Station around the Shijiazhuang Hi-Tech Zone and its ancillary facilities project, the Baoding Qingyuan-Cangzhou Suning Pipeline Project, the Qinxi Industrial Park Branch Line of the Qinhuangdao-Fengnan Pipeline, and Lulong High Voltage Project.

(5) Steadily operating urban CNG and LNG businesses

During the Reporting Period, the Group steadily operated its urban CNG and LNG businesses. As at 31 December 2023, the Group operated a total of 5 CNG primary filling stations, 3 CNG secondary filling stations, 3 LNG refilling stations and 1 L-CNG joint filling station.