In order to meet the environmental requirements of the Olympics, the natural gas demand of Beijing in 2008 will achieve a record high of 6.8 billion cubic meters, with an increase of 2.3 billion cubit meters compared with 2007. During the Olympic Games, all the Olympic facilities – Olympic stadiums, flame, athlete village, media village – will all use natural gas, and 600 to 800 new buses will consume compressed natural gas (CNG). We take servicing and supporting the Olympics as our obligation and mission. In 2007, the Company established the Implementation Plan to Guarantee Air Quality during the Olympics and took the following three actions to contribute to the Green Olympics:

— We accelerated gas field constructions at the upstream, built 7 underground gas storages in Northern China, and adjusted the pipeline network to achieve centralized control, guaranteeing stable and safe gas supply during the Olympics.

— In April 2007, the Company started to supply Beijing public transport with National-IV diesel oil, and committed to providing full supply of National-IV gasoline and diesel oil to Beijing from January 2008.

— We conducted oil-gas recovery and reconstruction for 10 oil depots, 921 service stations and 169 tank wagons in Beijing, Hebei and Tianjin, to eliminate pollution from oil and gas volatilization.