The company is one of the most powerful urban gas supply enterprises in South China. The company's main business is the sale of natural gas and LPG. The business scope covers gas engineering design and construction, and the construction and operation of natural gas high pressure, medium and low pressure pipelines. High Pressure Pipeline Network Company, a holding subsidiary of the company, has exclusive franchise rights to uniformly receive all pipeline natural gas entering the geographical area of Foshan City, and sells pipeline natural gas to urban gas operators and large gas users (specifically power plants) in the 5th district of Foshan City through its own natural gas high-pressure pipelines.
(1) High Pressure Pipeline Network Company, a holding subsidiary of the company, has exclusive franchise rights to uniformly receive all pipeline natural gas entering the geographical area of Foshan. Furthermore, in the five districts of Foshan, our company, Sanshui Gas, Gaoming Gas, and Shunde Gas, as urban gas operators in each district, have exclusive pipeline gas franchise rights in Chancheng District, Sanshui District, Gaoming District and Shunde District respectively. The operation and development of urban gas enterprises is greatly affected by the city size, level of economic development, industrial and commercial base, and urbanization process in the franchise area. The company's franchise area is mainly in Foshan City, Guangdong Province. It is located in the hinterland of the Pearl River Delta, one of the most economically powerful and development-dynamic regions in China. Together with Guangzhou, it forms the “Guangzhou-Foshan metropolitan area”. It is an important part of the “Guangzhou-Foshan Zhaohe Economic Zone” and the “Pearl River - Xijiang Economic Belt”, and is in a leading position in the economic and social development map of Guangdong Province. The rapid economic growth rate, developed industrial base, and increasing level of urbanization make energy consumption in Foshan high and can maintain continuous and steady growth, thus laying a good foundation for the healthy development of the company's natural gas business.
(2) Demand for clean energy, especially industrial gas (natural gas) consumption, will increase significantly. Meanwhile, Foshan will accelerate the pace of natural gas introduction and the construction of a natural gas pipeline network in accordance with relevant plans to guarantee the supply of natural gas. As the government's energy saving and emission reduction and industrial restructuring work progresses further, the pace of energy restructuring in Foshan accelerates, and the demand for natural gas will expand further.
(3) The company actively expanded natural gas resources and planned a scientific “4+2" gas supply pattern in Foshan. “4” in “4+2” refers to the four major pipeline gas sources, namely the Foshan Natural Gas High Pressure Pipeline Project built by the High Pressure Pipeline Network Company, Guangdong Dapeng LNG Main Line in the east, Zhongshan Offshore Gas in the south, Zhuhai LNG Main Line in the west, and West-East Gas Pipeline 2 in the north; “2” in “4+2” refers to the Shakou LNG storage and distribution station and the Mingcheng LNG storage and distribution station. After the third phase of the company's natural gas high-pressure pipeline network project is put into operation, the high-pressure pipeline network can better cover the entire territory of Foshan. At the same time, it is also easy to use the company's sufficient gas source advantages to transport natural gas to cities surrounding Foshan.