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Natural Gas Business

(1) Increase in sales volume of natural gas as compared with 2018

During the reporting period, the Group recorded an increase in its sales volume of natural gas thanks to the continuous enforcement of environmental protection policies and the policy of “replacing coal by gas”, and realized a sales volume of 3,237 million cubic meters for the year, representing an increase of 23.02% as compared with 2018, of which the wholesale volume amounted to 2,003 million cubic meters, representing an increase of 23.70% as compared with 2018 and accounting for 61.9% of total sales volume; the retail sales volume amounted to 1,135 million cubic meters, representing an increase of 23.41% as compared with 2018 and accounting for 35.1% of total sales volume; the sales volume of CNG/LNG amounted to 98 million cubic meters, representing an increase of 7.27% as compared with 2018 and accounting for 3.0% of the total sales volume.

(2) Active promotion of the construction of infrastructural projects

The Group’s natural gas pipeline increased by 1,026.49 kilometers in 2019. As of 31 December 2019, the Group operated pipeline with a total of 5,168.66 kilometers, including 957.72 kilometers of longdistance transmission pipeline and 4,210.94 kilometers of city gas pipeline; and the Group operated a total of 22 distribution stations and 13 gate stations.

During the reporting period, the Project of Pipelines for Ten Counties in Central Hebei Province (Phase III) (冀中十縣管網工程(三期)), the Comprehensive Utilization Project of the Pipeline Network of Natural Gas Around Gaoyi County (高邑縣環城管網天然氣綜合利用工程) and the Comprehensive Utilization Project of Zanhuang County Town Gas Pipeline (贊皇縣城鎮燃氣管線綜合利用工程) were completed and put into operation. The Shijiazhuang Recycling Chemical Industry Park (石家莊循環化工園區) obtained completion acceptance. Construction of the Zhuozhou-Yongqing Transmission Pipeline Project (涿州-永清輸氣管道工程) was commenced.