China Gas (08246) subsidiary plans to invest 80 million yuan to participate in the construction of the high-pressure natural gas pipeline project in Jinghai District, Tianjin.

China Gas (08246) announced that on April 30, 2026, the company's indirectly non-wholly owned subsidiary, Natural Gas Sales, entered into a project construction investment agreement with Tianjin Jin Re New Energy. Under this agreement, Natural Gas Sales agreed to invest RMB 80 million to participate in the project. The Chinese government has been actively promoting the development of clean energy and the coal-to-gas conversion plan as part of efforts to optimize the national energy structure and reduce carbon emissions. The project involves the construction of a high-pressure natural gas pipeline in Jinghai District, Tianjin. This pipeline will connect to the national gas network's 10.0 megapascal West-to-East Gas Transmission Pipeline at three intake points - G36 valve room, Jinghai gas station, and G37 valve room. The project is expected to have an annual gas transportation capacity of approximately 1.9 billion cubic meters, significantly increasing the liquefied natural gas supply capacity in Jinghai District and surrounding areas (including industrial parks, residential communities, and heating users). The implementation of the project will strengthen the regional natural gas supply guarantee, support the replacement of coal with natural gas, and contribute to environmental protection and sustainable development in Tianjin. The company believes that by providing investment funds for the project, it will enable the Group to participate in the natural gas transportation and supply network in Jinghai District. After the project is completed, the relevant fixed assets will be transferred to the project company, and the investment funds will automatically be used to subscribe to the equity of the project company according to the terms of the project construction investment agreement. Through this participation, the Group will be able to expand its business footprint in the regional natural gas infrastructure market, strengthen strategic cooperation with upstream pipeline operators, and enhance its competitiveness in the regional liquefied natural gas market. After the completion of the project and the conversion of the investment funds into equity in the project company, the Group is expected to benefit from the long-term operating income generated by the project.