LNG/LPG Import Business Introduction  

As one of the four core businesses of Southern Holdings Group (Hainan) Co., Ltd., the LNG/LPG import business leverages the policy advantages of the Hainan Free Trade Port and an international resource network to build a full-chain service system of "import - transportation - distribution," providing global clean energy resource security while exploring innovative models for international energy trade.  

I. LNG Import Business: Innovative Models and Strategic Synergy  

International Resource Network and Long-Term Agreement Supply  

Deepened Strategic Cooperation: Signed a long-term LNG supply agreement with QatarEnergy exceeding 3 million tons annually, becoming a key participant in global clean energy supply. By introducing LNG resources from Qatar, Australia, Russia, and other countries, a "multi-source supply, flexible allocation" resource network has been formed to meet domestic demand in industrial, urban gas, and transportation fuel markets.  

Industry Benchmark Case: In 2023, completed the first LNG (liquefied natural gas) import business at the Singapore port, delivering over 100,000 tons of LNG directly to pipeline-unconnected areas via a container liner "one-tank-through" transportation model. This innovative model was selected as an "Annual Clean Energy Innovation Case" in the *Energy Development Report*, providing a new path for natural gas peak-shaving reserves.  

Free Trade Port Policy Empowerment and Bonded Business Breakthroughs  

Enhanced Customs Clearance Efficiency: Relying on the Hainan Free Trade Port policy of "open first line, controlled second line," LNG import customs clearance time has been shortened by over 30%, and logistics costs reduced by approximately 20%. As the only node in China to carry out LNG international transshipment, the Hainan LNG receiving station enables diversified businesses such as bonded storage and entrepot trade.  

International Transshipment Hub Construction: In 2023, completed China’s first bonded transshipment international order, storing LNG from Australia, the U.S., and other countries in Yangpu Bonded Zone before transshipping to Japan, South Korea, and other demand countries, forming a closed-loop chain of "resource procurement - bonded warehousing - international distribution."  

Transportation and Distribution Network Optimization  

Innovative Tank Container Transportation**: Adopting an LNG tank container multimodal transport model, resources are delivered directly to end-users via "large LNG carrier + tank container distribution," particularly covering non-pipelined areas. In 2023, tank container transportation accounted for 20% of total volume, significantly enhancing logistics flexibility.  

Regional Market Coverage: Established LNG distribution networks at major ports in China, collaborating with enterprises like Sinochem Petroleum to combine tanker delivery and pipeline distribution. In 2024, comprehensive LNG sales in South China exceeded 2 million tons, with a market share of 15%.  

II. LPG Import Business: Regional Markets and Green Transformation  

Resource Procurement and Regional Distribution  

International Procurement Network: Established LPG procurement channels in major oil-producing regions such as Europe, Southeast Asia, the Middle East (Saudi Arabia, UAE), and Africa (Nigeria), with an annual import volume exceeding 500,000 tons through a combination of long-term agreements and spot purchases. Relying on Hainan Free Trade Port tariff reduction policies, LPG bonded warehousing costs have been reduced by over 30%.  

Market Layout: Built LPG distribution centers in Dalian, Tianjin, Qingdao, Qidong, Dongguan, Beihai, and other cities, covering industrial gas, chemical raw materials, and civil markets through a "direct sales + wholesale" model. In 2024, LPG sales exceeded 800,000 tons, making the company a major domestic LPG supplier.  

Transportation and Safety Management  

Specialized Logistics System: Collaborated with COSCO Shipping and China Merchants Steamship to build a transportation network of "large LPG carriers + feeder distribution." For LPG’s flammable and explosive characteristics, a "smart supervision" system has been introduced to fully digitize ship declaration and inspection processes, ensuring transportation safety.  

Emergency Supply Capacity: Constructed LPG emergency storage facilities in Hainan Yangpu, Guangdong Raoping, and other locations to respond to regional energy supply demands. In 2024, ensured peak gas demand in eastern Guangdong via a "green channel," with monthly imports exceeding 100,000 tons.  

Greenization and High-Value Extension  

Chemical Industry Chain Synergy: Exploring deep processing of LPG, planning to build a propane dehydrogenation (PDH) plant in Hainan to extend into chemical products like polypropylene and enhance resource value.  

III. Core Competitive Advantages and Future Plans  

Dual-Driven Policy and Geographical Location  Free Trade Port Policy Dividends**: Enjoying policy benefits such as tariff reductions and convenient cross-border capital flows, with unique advantages in LNG bonded warehousing and LPG entrepot trade. Aligning with Hainan’s clean energy island strategy to accelerate the layout of new energy fields like hydrogen energy and offshore wind power.  

Geographical Hub Value: Located at the land-sea intersection of the "Belt and Road," Hainan leverages Yangpu Port’s positioning as a "two-way dual-hub port" to build an LNG/LPG trade hub for Southeast Asia and the Asia-Pacific region.  

Technology and Digital Empowerment  

Intelligent Supply Chain Monitoring: The independently developed energy supply chain intelligent monitoring system achieves full-process visual management of procurement, warehousing, and transportation, improving operational efficiency by 40%. Introducing blockchain technology to optimize supply chain finance and reduce transaction costs.  

Smart Logistics Innovation: Achieved flexible allocation of LNG at any node of the national pipeline network through the "Pipeline Connect" product. In 2024, completed the first cross-regional natural gas transportation business, awarded the title of "Pioneer Cooperative Unit for Market-Oriented Operation" by the National Pipe Network Group.  

Future Strategic Upgrades  

Deepening International Resource Networks: Jointly developing African crude oil blocks with TotalEnergies to explore "resource + technology" cooperation models; piloting LNG cross-border RMB settlement to reduce exchange rate risks.  

Forming a Comprehensive Platform Strategy: Building an ecosystem of "energy trade + smart logistics + financial services," aiming to exceed 3 million tons of comprehensive LNG/LPG sales by 2025 and become a benchmark green energy trading service provider in the Asia-Pacific region.