The Fourth Session of the 13th People’s Congress of Henan Province and the Fourth Session of the 12th Henan Provincial CPPCC (hereinafter referred to as the “Henan Two Sessions”) opened in Zhengzhou on January 18 and January 17, 2021, respectively. At the meeting, the “14th Five-Year Plan” and long-term goals for 2035 were put forward, in which the implementation of rural construction activities was placed in an important position. The government work report mentioned that in 2021, the upgrade of rural infrastructure will be accelerated, the implementation of the “gasification village” project will be accelerated, and 2 million rural natural gas users will be added. As a pioneer and important participant in the gasification of rural areas in Henan Province, China Tianlun Gas Holdings Co., Ltd. (1600.HK, hereinafter referred to as “Tianlun Gas” or “Company”) will benefit from this policy.
According to reports from Henan Dahe Finance Cube,in Henan, Tianlun Gas is the pioneer and leader of rural gas construction. In July 2018, Yuzi Holding and Tianlun Gas jointly established Henan Yutian New Energy Co., Ltd. (hereinafter referred to as Yutian New Energy), and jointly established Henan Yuzi Tianlun New Energy Investment Fund with a total scale of 50 billion yuan. Used to invest in rural gasification projects and natural gas upstream and downstream industrial chains in Henan Province.
Nowadays, Tian Lun Gas is making efforts in the upstream and downstream industries of gasification villages at the same time. It plans to provide multi-level products by extending the industrial chain and actively integrate into the domestic cycle. As the director of Tianlun Group, Zhang Daoyuan, also a member of the Provincial Committee of the CPPCC, said that the province’s gasification and rural construction should be promoted in five levels: the province’s overall planning, clarification of competent departments, improvement of organizational structures and implementation systems, strengthening of funds and gas sources, and innovation of gas franchise rights.
At the Henan two sessions, the “Fourteenth Five-Year Plan for National Economic and Social Development of Henan Province and the Outline of Long-term Goals for 2035 (Draft)” was put forward. The draft predicts that during the 14th Five-Year Plan period, the average annual growth rate of Henan Province’s main economic indicators will be higher than the national average with an average annual growth rate of about 6% and the urbanization rate of the permanent population will exceed 60%. The main expected goals for economic and social development this year are GDP growth by more than 7%, industrial added value above designated size by about 7%, and fixed asset investment by 6%. The urbanization rate of the permanent population will increase by about 1.3%, and the energy consumption per 10,000 yuan of GDP will be reduced by about 3%. (Source: The “Fourteenth Five-Year Plan for National Economic and Social Development of Henan Province and the Outline of Long-term Goals for 2035 (Draft)”)
In addition to economic goals, the draft also emphasizes ecological construction and rural construction-related work. The draft put forward to implement the concept of green development, continue to improve environmental quality, strengthen precise prevention and control of air pollution, basically eliminate heavily polluted weather, actively practice green development methods, in-depth adjustment and optimization of industrial structure, energy structure, transportation structure, land use structure and agricultural investment structure, and continue to reduce the intensity of carbon emissions and reduce the proportion of coal in total energy consumption by about 5 percentage points. Among the eight key tasks to be done this year, promoting rural revitalization, accelerating agricultural and rural modernization were specially strengthened. Accelerate the implementation of the “Gasification Village” project, add 2 million rural natural gas users, optimize and upgrade rural infrastructures such as water, electricity, roads, communications, radio and television, and logistics, and improve the level of rural public services. In 2020, Henan will comprehensively improve the living environment in rural areas. Pipeline natural gas will enter more than 1.2 million villages while vigorously promoting energy conservation and carbon reduction. Promote clean production and green transformation in key industries, promote the use of environmentally friendly and energy-saving equipment and products, implement the project of entering enterprises and parks on special railway lines, and launch low-carbon pilot projects in multiple fields to improve the level of green development. (Source: The “Fourteenth Five-Year Plan for National Economic and Social Development of Henan Province and the Outline of Long-term Goals for 2035 (Draft)”)
In the 2035 long-term goal, it is emphasized that in the construction of an ecologically strong province, the ecological environment will be fundamentally improved, and the Yellow River Basin will be the first to achieve a healthy and stable ecosystem, a wide range of green production and lifestyles and a steady decline in carbon emissions after peaking and then realize the modernization of harmonious coexistence between human beings and nature. (Source: The “Fourteenth Five-Year Plan for National Economic and Social Development of Henan Province and the Outline of Long-term Goals for 2035 (Draft)”)