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CIMC Enric’s LPG Tank Trucks with Pumps Obtained Three New Assessments Certification Reaffirm it’s leading position for LPG micro-pipe network integrated solutions

2022-05-17

(17 May 2022 – Hong Kong) CIMC Enric Holdings Limited (“CIMC Enric” or “the Company”) together with its subsidiaries (the "Group") (Stock Code: 3899.HK) is pleased to announce today that the small LPG (commercial propane) tank truck with unloading pump ("LPG tank truck with pump") manufactured by Jingmen Hongtu Special Aircraft Manufacturing Co., Ltd. ("Jingmen Hongtu"), a subsidiary of the Company, successfully passed the technical assessments on "new materials, new processes and new technologies " ("the Certificate") with its. As one of the only two intelligent LPG micro-pipe network integrated solution providers in China that have passed the three new assessments, the products obtained such qualification can now be offering for sale in the market. This achievement fills a gap in clean energy applications for the country, paved the way for development of LPG micro-pipe network for China’s rurual regions.



When new materials, new processes and new technologies that not being covered with the “Supervision Regulation on Safety Technology for Transportable Pressure Vessel” being adopted for manufaction of mobile pressure equipment,the Certificate shall be obtained from the State Administration for Market Regulation (SAMR) before the equipment are being put into production, offer for sell and come into service.



The LPG tank trucks with pumps developed by Jingmen Hongtu are used as a set for the small LPG storage tanks. It will play an important role in accerlerating the development of rural LPG micro-pipeline network . The Company is now being one of only two suppliers in China that can provide such equipment. 



The LPG micro-pipeline network solution is designed to serve rural areas that not yet covered by the natural gas pipeline network. The system uses a dedicated LPG tank truck with pump to distribute LPG from a centralized storage and distribution station to a small storage tank in each village. After the process of gasification, the petroleum gas enters each households via an independent village gas pipeline network. Residents’ consumption is measured by meter, making it convenient to use. New technologies such as the Internet of Things, intelligent and cloud platforms were integrated into the process, transforming the original gas supply mode of "bottled supply, household storage and self-custody" into a "centralized gas supply source with decentralized access via intelligent micro-pipe network to households" this mode significantly reduces the cost of gas consumption in rural areas.



The "Opinions of the Central Committee of the CPC and the State Council Concerning Several Policies on Comprehensively Promoting Rural Revitalization and Accelerating the Modernization of Agriculture and Rural areas” in No. 1 Central Document 2021 states that it is necessary to "advance rural basic infrastructure construction and extend coverage to villages and households”. It strongly recommends "bringing gas to the countryside by supporting the construction of safe and reliable rural gas storage stations and micro-pipe network gas supply systems." Providing gas to the countryside will greatly help China in achieving its goals of carbon emission peak, carbon neutralization and urban-rural integration.


According to the National Bureau of Statistics, the rural population of China in 2021 was 498 million with more than 600,000 administrative villages. It is calculated that the gas storage capacity of one LPG small storage tank can meet the gas demand of one village for an entire month. These small storage tanks must be used in conjunction with an LPG tank truck with pump and there is wide demand for LPG micro-pipe network equipment in villages and towns.


As of today, 14 provinces/autonomous regions including Guangdong, Zhejiang, Jiangsu, Fujian and Hainan have inked agreements with relevant company for LPG mirco-pipe network with more than 1.5 million contracted users. it is estimated that China will have around 20 million LPG intelligent micro-pipe network users within next 10 years.


Mr. Yang Xiaohu, Executive Director and General Manager of CIMC Enric, said, “There are many application scenarios for intelligent LPG micro-pipe networks. In addition to supplying domestic gas to farmers, they can also help modernize agriculture in rural areas, and solve the problem of vast rural areas being inconvenient or unaffordable to use gas. Being one of the first batch enterprises to obtain the certificate proves CIMC Enric’s industry leading position for LPG equipment. Looking ahead, CIMC Enric will join hands with major partners to provide users with a safe, reliable, convenient and economical LPG network, to enhance China’s beautiful countryside construction.”