| Accumulative Connected Users | Average Natural Gas Tariffs (Exclusive of VAT) (RMB/ m3) | Natual Gas Sales Volume (million m3) |
Residential | 43,095,245 | 2.65 | 7,353.9 |
Industrial | 19,808 | 3.01 | 10,804.3 |
Commercial | 297,664 | 3.18 | 2,948.2 |
CNG Stations | 533 | 3.51 | 812.4 |
Total | - | - | 36,703.2 |
Urban Population Covered：approximately 53.5 million households
Penetration rate：65.2%
Average Residential Connection Fee:
- RMB 2,457 per household for city gas projects
- RMB 2,945 per household for rural coal-to-gas projects
Length of Pipelines: Over 525,461 km
During the financial year, the Group acquired 18 additional city and township piped gas projects. As at 31 March 2022, the Group had obtained 660 piped gas projects with concession rights in 30 provinces, municipalities and autonomous regions in China. The Group also had 32 long-distance natural gas pipeline projects, 533 CNG/LNG vehicle refilling stations, one coalbed methane development project, and 106 LPG distribution projects.
During the financial year, the Group indirectly held a 49% equity interest in Beijing Huayou United Gas Development Co., Ltd.* (北京華油聯合燃氣開發有限公司) (‘‘Beijing Huayou’’) through acquisition. This company’s principal businesses cover the investment and operation of city piped gas projects, natural gas refilling stations and LNG trading. Its gas projects are located in Majuqiao Town, Tongzhou District (operated from Beijing Economic and Technological Development Zone, Daxing District, and Majuqiao Town), Mentougou District (operated from Mentougou District and Tanzhe Temple Town), Changping District and Shijingshan District of Beijing Municipality, Qihe County in Shandong Province and Suizhong County in Liaoning Province. In addition, the company has built eight natural gas processing stations, six CNG mother and refueling stations, a 43 km network of high-pressure pipelines, a 95 km network of sub-high pressure pipelines, and a 583 km network of medium-pressure pipelines. During the period, annual gas sales of Beijing Huayou and its subsidiaries amounted to 670 million m3.
After examining the macro environment and studying future development trends, the Group adjusted its investment and development strategies. It significantly slowed down its investment and installation business of residential coal-to-gas projects in rural areas in Northern China. Meanwhile, persistent downward pressure in the real estate industry also created challenges for the Group to acquire new users. In addition, since the first quarter of 2022, the frequent outbreaks of the COVID-19 pandemic across China have hindered traveling, transport and cargo logistics, thus hampering pipeline building and user connections. As a result, during the financial year, the Group increased residential connections by 2,941,421 households, down by approximately 41.7% year-on-year.
As at 31 March 2022, the accumulated number of connected residential users of the Group was 43,095,245, representing a year-on-year increase of approximately 7.3%. The penetration rate of residential households of city gas projects reached 65.2%.
During the financial year, the Group connected a total of 2,762 new industrial users and 31,200 new commercial users. As at 31 March 2022, the Group had cumulatively connected 19,808 industrial users and 297,664 commercial users, representing a year-on-year increase of approximately 16.2% and 11.7%.
Although the pandemic control measures reduced gas demand from industrial and commercial users, these negative impacts were mostly offset by the new demand induced by environmental protection policies and the low-carbon transition. During the financial year, the Group’s total natural gas sales maintained relatively rapid growth and reached 36.7 billion m3, up by 17.6% year-on-year. The gas was mainly sold through city and township pipelines, trading and direct-supply pipelines. Sales through city and township pipelines accounted for 21.92 billion m3, up by 17.2% year-on-year, and the amount for trading and direct-supply pipelines was 14.78 billion m3, up by 18.2% year-on-year.