Suchuang Gas Corporation Ltd.
116 Loujiangnan Road Taicang, Suzhou City, Jiangsu Province PRC
Tel.: +86 512 53521392
Fax: +86 512 53521392
Suchuang Gas Corporation Limited (“Suchuang Gas” or the “Company”) and, together with its subsidiaries, the “Group”; stock code: 1430), is the dominant piped natural gas operator in Taicang of Jiangsu Province, with an exclusive right under the concession agreement with the local authority to sell and transmit piped natural gas to users in the operating area for an initial term of 30 years ending 31 August 2043. The Group’s operating area represents more than 70% of Taicang’s total area, and its natural gas pipeline network has already covered over 90% of the natural gas pipeline network in Taicang in terms of length, as at 30 June 2016.
Taicang is one of the major industrial county-level cities in Jiangsu Province. It is adjacent to the affluent cities in eastern China such as Suzhou, Kunshan, Changshu and Shanghai. Active economic and industrial development in the region steadily enlarges the user base for natural gas, especially industrial and commercial users, whose contribution to our total revenue was significant. Through acquisition of 60% equity interest of Kunshan Anda Natural Gas Development Co., Ltd. and 51% equity interest of Sichuan Guangyuan Licheng Gas Co., Ltd., the Group expanded its piped natural gas business coverage outside Taicang City and stepped into CNG refuelling station market in Sichuan Province. Sichuan Guangyuan Licheng Gas is predominant in the CNG refuelling station business in Guangyuan City, and currently operates three CNG refuelling stations for sale of CNG for vehicular use, and has one CNG refuelling station under construction in Guangyuan City. Relying on abundant natural gas resources in Sichuan Province and a wide range of gas pipeline network, Suchuang Gas will step into the CNG market in Sichuan Province, which is a region with good growth potential of the Group.
Suchuang Gas has more than eight years of business relationship with PetroChina and has entered into the Master Supply Agreements with PetroChina for a 12-year term starting from 2011. The strategic relationship with PetroChina enables Suchuang Gas to obtain a reliable, stable and abundant supply of natural gas which is essential for the operation and development of our piped natural gas sale and transmission business as well as the expansion plan in the future. The Group has put into operation the city gateway station which is connected with the Sichuan-East TransmissionPipeline of Sinopec in November last year, to further safeguard the sufficientgas-supply resources in areas where the Group performs its main businesses. The major customers of the Group comprised principally the wholesale customers, which were local gas distributors, and industrial and commercial users in the retail segment, with whom the Group generally had around four years of business relationship on average.