The Chinese mainland is the major market for the Group’s business expansion, as the Group has established sizeable customer resources and business networks with a solid foundation there since 1994.
As China implements the goals of achieving carbon peak and carbon neutrality by 2030 and 2060 respectively, natural gas, as one of the cleanest fossil energy sources, will continue to play an important role in the energy mix. Moreover, it has the advantage of being able to be used easily in combination with other clean energy sources. We therefore believe there would be tremendous prospects for the development. In future, we will continue to focus on city gas business, providing one-stop energy services to household customers and a diverse spectrum of businesses.
City Gas
We currently have 190 city gas projects, serving more than 17 million customers, including households and commercial and industrial clients. In 2023, total gas sales reached 16,458 million cubic metres.
Leveraging our city gas business, we put considerable effort in developing the “Gas+” integrated energy business that provides one-stop solutions for low-carbon, high-efficient and light-asset-based energy services to meet the multiple energy needs of customers.
In recent years, we have grasped the market opportunities by offering professional integrated energy solutions to public institutions on the Chinese mainland. The target customers included hospitals, schools, government agencies and commercial complexes. Moreover, we continue exploring incremental markets such as gas utilisation in the new energy industry and promoting clean heating services in northern regions that have high demand for centralised heating.
Heat Supply Project – Haier Higher Show Mall Project in Qingdao City, Shandong Province
Located in Jimo District, Qingdao City, Shandong Province, a commercial district with specialties featuring cultural commerce, high-end business and green residential spaces, Haier Higher Show Mall is the first 5G+ smart mall project in the city. With a heating area of approximately 100,000 square metres, Qingdao Zhongji Hong Kong and China Gas, a Group subsidiary, conducted an in-depth analysis of customers’ heat consumption requirements to develop customised integrated energy solutions for the mall. The resulting approach integrates a high-efficiency and low-nitrogen gas boiler system, plate heat exchange operation, water treatment system and smart energy management into an underground energy station to provide clean and stable heating services for the entire commercial complex.
The heat source equipment automatically adjusts the operation of the boilers and circulation system according to users’ demand in different areas and time periods, the data of outdoor temperature sensors and the management system at smart energy station. As a result, the system achieves on demand supply and precise control, significantly saving operating costs. The project’s annual heat supply is approximately 25,000 GJ. The energy consumption level is well below the average of peer projects, reducing carbon dioxide by approximately 750 to 850 tonnes a year.
Optimising the Gas Supply Chain
We strive to strengthen self-sufficiency in natural gas supply, enhance peak-shaving capacity during high-demand seasons, and maintain price stability. Our parent company, The Hong Kong and China Gas Company Limited (Towngas), has a gas supply chain business segment to coordinate gas procurement across all businesses, achieving synergy. Through a three-pronged approach of procurement, transmission and distribution, and storage, we optimise the Group’s gas source structure to ensure stable supply, reduce costs, and increase profits.
The Group adopts a multi-source strategy, implementing independent procurement of imported liquefied natural gas (LNG). We have established a complete business process from LNG importation to terminal unloading and downstream distribution. Simultaneously, we continue to expand our self-operated gas sources and enhance gas infrastructure to increase our storage capacity.
Strengthening Gas Supply Reliability
The Group, together with its parent company, continues to enhance the capacity of its gas storage facilities.
- The underground salt cavern gas storage facility in Jintan district, Changzhou, Jiangsu province, has a total storage capacity of nearly 400 million cubic metres.
- The emergency peak-shaving storage and distribution base in Weiyuan county, Sichuan province, has commenced operations, with an annual gas sales volume of about 200 million cubic metres.
- The storage tanks at the receiving terminal in Caofeidian district, Tangshan, Hebei province, are scheduled for completion in 2024. These will further enhance the Group’s peak-shaving capabilities across various regions.