Zhonghua Gas Holdings Limited (Zhonghua Gas) announced that its 81.81%-owned subsidiary, Tianjin Jin Re Natural Gas Sales Co., Ltd. (LNG Sales), signed a Project Construction Investment Agreement on 30 April 2026 with Tianjin Jin Re New Energy Co., Ltd. Under the agreement, LNG Sales will contribute RMB 80.00 million within 10 business days to support construction of a high-pressure natural gas pipeline in Jinghai District, Tianjin.
The project will connect to PipeChina’s 10.0 MPa west-to-east high-pressure pipeline at three intake points—G36 Valve Chamber, Jinghai Gas Distribution Station and G37 Valve Chamber—delivering an estimated 1.90 billion Nm³ of annual transmission capacity to industrial zones, residential areas and heating users in and around Jinghai District.
Key terms stipulate that: • Tianjin Jin Re New Energy must complete the main construction work, reclassify the assets from construction in progress to fixed assets, transfer beneficial ownership to a dedicated project company and make the project operational by 30 June 2027. • Upon fulfillment of these undertakings, the RMB 80.00 million will automatically convert into an equity stake in the project company, with the precise percentage determined by the ratio of Zhonghua Gas’s investment to the audited total project cost. • If the undertakings are not met by the closing date, Tianjin Jin Re New Energy must refund the full investment within one month and will grant LNG Sales a right of first refusal on future high-pressure pipeline projects.
Funding will be sourced entirely from Zhonghua Gas’s internal resources. The transaction qualifies as a discloseable transaction under Chapter 19 of the GEM Listing Rules, as the applicable percentage ratios exceed 5% but are below 25%, triggering notification and announcement requirements without the need for shareholder approval.
Zhonghua Gas views participation in the project as a strategic step to expand its regional natural gas infrastructure footprint, strengthen links with upstream pipeline operators and secure long-term operational income once the pipeline is commissioned and the equity conversion is completed.