The main business of China Gas includes the production, transmission and distribution of gas, the sales of gas and gas stoves, and the provision of comprehensive after-sales service. China Gas has actively developed urban pipeline gas business and several midstream projects in several cities in Chinese mainland. In 2005, it began to enter urban water projects, including urban water supply and sewage treatment. At present, it operates more than 70 joint ventures in Chinese mainland. On October/February, 2009, China Gas announced that Shanxi Huagang CBM, which holds 70% of its shares, signed CBM contracts with Qinshui Lan Yan and Shanxi Jincheng. According to this contract, Shuilanyan agreed to supply CBM to the Shanxi joint venture company for 30 years.
Mainland business development
After the acquisition of Baijiang Gas was completed in March 2007, the number of urban pipeline gas projects increased by 25, and the business map also expanded to the northeast and southwest regions. In order to cope with the adjustment of national energy structure and the continued high international oil price, the Group, in addition to continuing to invest in urban pipeline gas projects, is currently committed to developing new energy businesses, including the development and utilization of coalbed methane and natural gas, coal-based energy and chemical industry, and environmental protection automobile energy. And made good progress. Emerging energy can replace petroleum products, its development and development. The group's first coal-bed methane liquefaction project in Jincheng, Shanxi Province started in early July last year and is expected to be put into production in the middle of this year. The composition of coalbed methane is similar to that of natural gas, and it can become an important environmental protection energy. Last September, the second phase of the project planned to increase the production of lcpm. At the beginning of 2007, the Group won the first energy exploration joint venture project in Jilin Province, and participated in the exploration, exploitation and sales of oil and natural gas, which can provide additional gas sources for downstream natural gas projects in the region. The accumulated experience in upstream operation of oil and gas fields will also help the Group to expand other upstream energy projects. In addition, the Group's energy midstream project business has also made good progress. Following the natural gas pipeline projects in Anhui Province, Hebei Province and Hangzhou City, Zhejiang Province, the Group won the natural gas joint venture project in Jilin Province in 2007 to build provincial natural gas branch lines and develop gas field resources. Investing in natural gas high-pressure pipeline joint venture projects will help the Group expand joint venture projects in downstream cities and consolidate the development of the Group's urban pipeline gas market in these areas.
The contract will be divided into two phases. In the first stage, about 270,000 to 300,000 standard cubic meters of coalbed methane will be mined for the Shanxi Joint Venture, and in the second stage, about 540,000 to 600,000 standard cubic meters of coalbed methane will be mined for the Shanxi Joint Venture.
Lee Shau Kee, Chairman of China Gas Company, said in the interim report that the Group's substantial profit last year was mainly due to the sales profit, the improvement of investment property valuation and the one-off book profit brought by the acquisition of Baijiang Gas, in addition to the business growth in Hong Kong and the Mainland. However, it is expected that the group's one-time profit and sales profit will be greatly reduced in 2008.
He pointed out that the company did not increase the standard gas fee in the past 10 years, and introduced natural gas to replace part of naphtha as gas-making raw material in June 2006, thus reducing the raw material cost and alleviating the economic impact caused by the rise in international oil prices. The company also immediately returned the cost of raw materials saved to customers, directly benefiting customers.
The performance and prospect of China, Hongkong and China Gas Company.
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China, Hongkong and China Gas Cash Flow
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China, Hongkong and China Gas Balance Sheet
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