In June 2011, Kunlun Energy Company Limited signed a strategic cooperation framework agreement in relation to “Gasification of Baoding by Trinity of Pipeline Natural Gas, CNG and LNG” with Baoding Municipal People’s Government. Both parties agreed to implement the low-carbon economic development strategy focusing on piped natural gas, complemented with compressed natural gas (CNG), and highlighted with liquefied natural gas (LNG).
Zhongmao Energy Company Limited, a subsidiary of China Natural Gas Co., Ltd., of which Kunlun Energy is the holding company, would be responsible for implementation.
With the implementation of the agreement over the last two years, Zhongmao Energy Company Limited invested, constructed, and operated the natural gas pipeline connects Bazhou and Baoding, established 19 CNG primary stations and LNG stations, achieved the one-off replacement of all city buses to natural gas powered buses. Currently, there are 1,260 LNG-powered vehicles operating in Baoding City.
Mr. Wang Ji, deputy general manager of Baoding Transportation Group, mentioned that LNG-powered coaches, different from the traditional diesel-powered vehicles, will help save the fuel cost of RMB 0.5 yuan per kilometer as they travels. According to the average mileage of the current vehicles of the Company, each vehicle could save the fuel cost of RMB 60,000 to 70,000 per year. Meanwhile, the cleanness and environmental friendly feature of LNG also provide drivers a comfortable and convenient driving experience.
Being one of the low-carbon economic development pilot cities initiated by the National Development and Reform Commission, Baoding City, through the development of natural-gas-powered vehicles, will benefit the city’s entire low-carbon economy in many areas, including environmental protection. As estimated, buses in Baoding, after the conversion of oil-powered to gas-powered, could reduce 6,000 tons of harmful gases emission, which the major source is carbon dioxide. This will help Baoding City to optimize the readjustment of its energy structure, and accelerate the economic development and the construction of a city focused on low-carbon environmental protection.