Kunlun Energy : Commencement of Construction of Zhoukou Gas-Fired Power Plant Project

During the 13th 'Five-Year Plan' period, Kunlun Energy actively participates in natural gas power generation and distributed energy business in order to increase its sales volume of natural gas. In the morning of 22 October 2016, the construction commencement ceremony of Zhoukou Gas-fired Power Plant Project in which the Company invests was held in Zhoukou, Henan Province.

Zhoukou Gas-fired Power Plant Project is an important gas-fired power generation plant under China's general plan for west-east gas transmission pipeline I and a key construction project under the 13th 'Five-Year Plan' of Zhoukou, Henan Province. It adopts the heat and power cogeneration model and takes into consideration both electricity grid peak regulation and pipeline peak regulation. The project is jointly invested and developed by State Power Investment Group Henan Power Company Limited (国家电投集团河南电力有限公司), Kunlun Energy Company Limited and Henan Yixing Industry Group Company Limited and is expected to be put into production by the end of 2017, with an annual gas consumption volume of over 800 million cubic metres upon completion. The project is the fourth natural gas power generation project invested by the Company, following Jiangsu Huadian Yizheng Cogen-Power Co., Ltd. (江苏华电仪征热电有限公司), Suzhou Industrial Park Northern Gas Turbine Cogen-Power Co., Ltd. (苏州工业园区北部燃机热电有限公司) and Jiangsu Huaneng Jinling Gas Turbine Cogen-Power Co., Ltd. (江苏华能金陵燃机热电有限公司).

By leveraging natural gas as a clean energy to generate power, the project is not only in line with national industrial policy but also has significant economic and social benefits for optimising energy structure, improving local ecology and facilitating local economic and social development in Zhoukou.