Natural Gas (LNG/CNG) Operations

 LNG is a liquid form of natural gas that can be easily and safely stored or transported in unpressurised containers. consumers of LNG mainly include industrial, transport and residential users. With the growing awareness of natural gas as a clean and efficient energy source in China and strong government advocacy, the demand for natural gas has grown rapidly in recent years. In particular, the implementation of the low carbon economy model has brought new development opportunities for the natural gas industry. With the strengthening of oil and gas exploration and development, the accelerated construction of natural gas production, supply, storage and marketing, and the introduction of policies to improve the natural gas market mechanism, China's natural gas industry has entered a golden period of development. The natural gas industry is developing rapidly and we recognise that opportunities and challenges exist. lNG and CNG are more active than ever in the natural gas market, providing a reliable source of clean energy and ensuring peak gas consumption in the winter months. This is in line with the current strong environmental policy and the trend of increasing supply year on year. Promoting the use of L-CNG for industrial users and LNG heavy-duty trucks is an important development for the LNG and CNG industry.

 City Gas Transmission and Distribution Construction

The Company has gradually ventured into the domestic clean energy sector since 2015 and formally established its operations team in 2019. The Company has entered into natural gas (LNG/CNG) trading and logistics, traditional fuel replacement solutions for industrial users and industrial oil fields, distributed energy development, planning and investment, operation of new energy fuel industries, and management of city gas transmission and distribution construction in Sichuan, Guizhou and Yunnan. The Company has the right to operate a 120 tonnes per day LNG liquefied natural gas plant in Chengdu, Sichuan Province, as well as an integrated refuelling and filling station. in July 2022, the Company commissioned a new CNG skid-mounted production plant.

  The Company has leveraged its experience and dominant position in the upstream oil and gas market, as well as China's strong promotion of low-carbon and clean energy policies, to consolidate strategic relationships with upstream and downstream partners, such as the upstream gas supply agreements with Sinopec and PetroChina in Sichuan, China, for up to 10 years. We are currently working with local gas companies to process piped gas from Sinopec and PetroChina into LNG through a liquefaction plant, which will then be delivered to residential pipeline networks and petrol stations in the various cities where we operate. The partner plant can process 100,000 cubic metres of gas per day and produce approximately 25,000 tonnes of LNG per year.

The liquefied natural gas sector is an important direction for the company's future development. One of the advantages is that the company's equipment manufacturing plant can produce 60% of the equipment required for the production of liquefied natural gas. This can largely help the company to reduce the construction costs of the liquefaction plant and its post-operation costs. The company is capable of helping customers to build turnkey LNG LNG plants, as well as building and operating complete refuelling stations according to customer requirements, and can also provide technical support and system solutions and services for these projects already in operation.

Renewable energy construction

The company's new energy strategy focuses on the fields of photovoltaics, wind power, hydrogen charging convergence and energy networking, aiming to provide integrated solutions for the entire life cycle of project development and investment, research and development, design and construction, and operation and management.

In the strategic development of the Group, we will focus firmly on the field of new energy generation, build on the achievements of our current work in the oil and petrochemical sector, work together with our partners to promote core technology research and innovation, continue to promote green product design, integrate green concepts into the whole life cycle of products, and promote synergy and efficiency in reducing pollution and carbon. We are also committed to building and improving the standard system of the whole industry chain of the new energy industry, and promoting the green synergy and upgrading of the industry chain and supply chain. In the future, the company will further strengthen its green design technology innovation capability and bring the ultimate experience to customers worldwide with more low-carbon and efficient products and services.

As an emerging energy source, solar energy is gaining tremendous growth momentum worldwide. As such, solar construction will be the Company's current and future focus. The Company is currently working with SunPower, one of the most renowned solar manufacturers in China, to undertake solar construction for two major customers, PetroChina and Sinopec. The Company plans to actively explore integrated solar farms, distributed solar farms and domestic solar power generation, and provide full life-cycle solutions for project development, including investment, system development, design and construction, operation and management.

Photovoltaic industry

LEISHEN Energy and SunPower formed a consortium and signed a framework agreement in PetroChina and Sinopec, successively completing the supply of PV inverters for PetroChina's largest PV project: the 300 MW PV grid-connected power generation project in Yumen Oilfield; and is currently promoting the supply of inverters for distributed and centralized PV projects in Ordos and Tianjin.

Taking advantage of SunPower's technological advantages in PV inverters, and on the basis of win-win cooperation, Raytheon Energy plans to build a number of PV inverter production lines to undertake the surge of PV inverter orders from the energy industries of CNPC, CNOOC and Sinopec.

Hydrogen production and hydrogenation solutions

With the landing of Sinopec's 300MW green hydrogen demonstration project in Kuche, Xinjiang, and the initial completion of the design of hydrogen production in Erdos, through green power to green hydrogen.

LEISHEN Energy cooperates deeply with Sunshine Group's Hydrogen Production Division to design, develop and implement tailor-made supporting products for CNPC and Sinopec, including electrolytic water hydrogen production (gas-liquid separation) and hydrogen refuelling station compressors.