Liquefied Petroleum Gas (LPG) is a by-product from catalytic cracking and thermal cracking of crude oil in refinery, consisting of flammable hydrocarbons, as propane and butane, obtained as a by-product from the refining of petroleum. It is mainly used as a domestic fuel, especially in rual areas, and also as an industrial and motor fuel.
The Group currently has 12 LPG terminals and 113 LPG distribution projects, covering 21 provinces.
The Group has become China’s largest integrated LPG service provider involved in import, terminal, trade, storage, logistics, filling, distribution and retail, serving residential, industrial and commercial users with its products and services. The Group endeavors to maintain close collaboration between retail and trade businesses to reap benefits from complementary advantages derived from upstream and downstream cooperation. To procure upstream gas, we continue to enhance our cooperation with domestic and international resource providers and traders. We also make full use of our large storage facilities to carry out futures delivery business and warehouse-to-sales business. The Group also made substantial progress in deep processing business. In particular, the Yanchang Zhongran Taixing Light Hydrocarbon Deep Processing Project in Jiangsu and the Meizhou Bay Liquefied Hydrocarbon Terminal Storage Facilities Project in Fujian commenced construction, while the Zhongran Yanchang Liquefied Hydrocarbon Storage Facilities Project in Jiangsu and the Zhongran Baogang International Liquefied Hydrocarbon Storage Facilities Project in Shandong are under construction at full steam. Upon delivery and operation of its two VLGCs, CHINA GAS LEGEND and CHINA GAS GLORY, the Group covers the entire chain of trading as to “international procurement, maritime shipping and trading, and warehousing in terminals”, taking a leap towards the upstream business of international trade. Furthermore, the Group insists on regulating and integrating the LPG market by innovation and quality service, and scales up the promotion of its proprietary Smart MicroGrid business in the central and southern regions as well as coastal regions. We also have, among others, national customer service hotline 95007 to improve service quality. We adopt Internet of Things to actively develop procurement and logistics business using LPG trucks. We bring new technologies to supervise and control the operation and circulation of LPG cylinder for the enhancement of safety management. We believe that LPG consumption will maintain stable growth in the future along with the accelerated process of new rural construction, urbanization and higher requirement of environmental protection in China.