1. Investment in clean energy infrastructure
Fortune Oil is one of the main shareholders of China Gas Holdings Limited “CGH” (HKEX: 384). CGH is one of the largest integrated energy suppliers and service providers in China. CGH successfully operates businesses including piped natural gas, liquefied petroleum gas (“LPG”), liquefied natural gas (“LNG”) supply, vehicle and ship natural gas refuelling operations, distributed energy, natural gas thermal power, energy management services, the supply of gas equipment kitchen appliances and e-commerce.
As of 31 March 2020, CGH operates across 29 provinces, municipalities and autonomous regions in mainland China, with over 600 exclusive piped natural gas projects, 600 natural gas vehicle and ship refuelling stations, 110 LPG terminal distribution projects, 100 multi-energy complementary integrated energy supply projects, 1 coal bed methane development project, 17 natural gas long-distance pipeline projects, 8 LPG terminals, 4 large petrochemical storage bases, 1 marine transportation fleet, a number of hazardous goods transportation fleets. With a gas pipeline network over 400,000 kilometers long, 36 million piped gas customers, 6 million of bottled LPG customers, and natural gas supply covering an urban population of over 150 million CGH is one of the leading energy suppliers in China. The company's market value ranks among the top 100 global listed companies in the Greater China Region.
2. Jet Fuel infrastructure operation, fuel supply and refuelling business
Established in 1998, South China Bluesky Aviation Oil Company Limited (“Bluesky”) is the largest State Council approved civil aviation joint venture between CNAF, Fortune Oil and BP PLC . It is responsible for the sourcing, storage, transportation, sales and refuelling services at 32 airports in 5 central and southern provinces, including the cities of Guangzhou, Nanning, Guilin, Changsha, Wuhan and Zhengzhou, serving 171 national and international airlines. In 2019, Bluesky provided safe and reliable fuel supply to 749,000 aircraft and sold over 5.8217 million tonnes of aviation fuel, which accounted for about 16.71% of China’s aviation refuelling market.
For 22 years, since incorporation, Bluesky’s strategic goal is to be one of the most progressive and innovative aviation fuel suppliers in the Asia Pacific region, achieving sustainability in markets, profits and culture. The company strives to offer excellent services for domestic and international airlines as well as a secure supply of China’s aviation fuel. Encouraging a corporate culture of a world-class business with a dedicated team, Bluesky is committed to enhancing economic growth, social values and environmental awareness. Bluesky’s operating performance and continuous improvement have been fully recognised across the aviation industry as well as the general public.
China’s civil aviation sector is currently at a stage of high growth. The prospects for Guangzhou Baiyun International Airport, one of China’s three most important international aviation hubs, is enormously promising. With an annual passenger volume of 73.3785 million in 2019, Baiyun Airport now operates 3 runways and 2 terminals. By 2025, it will have 5 runways and 3 terminals.
As the sole aviation fuel supplier of Guangzhou Baiyun Airport, Bluesky is well positioned for continued growth and innovation, in keeping with the exponential growth of China’s civil aviation market and providing even better service for its aviation customers. It will also enhance its economic performance, environmental standard and social responsibilities, and maximise returns for its shareholders.
3. Offshore crude oil terminal – Maoming SPM (Single Point Mooring)
Maoming SPM was Fortune Oil’s first energy project in China. In 1993, Fortune Oil and Sinopec Maoming (one of China’s largest refineries) established a joint venture Maoming King Ming Petroleum Company Ltd (“MKM”). In December 1994, Maoming single point mooring (“SPM”) came into operation. The project has a 15-km, 34 inch diameter sub-sea pipeline, a single-point buoy system and related facilities. Maoming SPM is able to handle Very Large Crude Carriers (“VLCC”) of up to 300,000 tonnes, with over 10 million tonnes of annual crude oil handling capacity. It also remains the only SPM system of its kind in China for handling crude oil.
In 2013, in order to meet Maoming refinery’s ever growing crude oil demand, Fortune Oil and Sinopec formed Maoming New King Ming Petroleum Company Ltd (“NKM”), to expand the SPM system and NKM has built a second sub-sea pipeline to supply 300,000 tonnes per annum to the Maoming refinery.
In May 2017, NKM completed the construction of the second sub-sea pipeline of 15.49 km long and 48 inches in diameter. With the operation of the second sub-sea pipeline, the annual import capacity and handling efficiency of the SPM has increased by over 50%.
Maoming SPM maintains a world-class track record of safe, environmental friendly and efficient operation. The SPM has handled 1,260 vessels and imported 236 million tonnes of crude oil as of the end of December 2020.
4. Oil products and liquefied petrochemical products storage
The West Zhuhai Jetty and Storage Terminal is operated by South China United Petroleum Company (“West Zhuhai”), a joint venture between PetroChina Company Limited , Fortune Oil and Poweroil Group Company Limited . Established in March 1994, West Zhuhai’s business includes petroleum trading, storage, wholesale and retail, plus other terminal services.
West Zhuhai Jetty and Storage Terminal is located at Zhuhai Bay of Gaolan Island, within the Zhuhai Special Economic Zone, covering an area of 147,600 square metres. After three phases of development, the terminal facility now has 22 tanks, with a total capacity of 457,000 cubic metres of oil products and liquefied petrochemical products. The facility is among the largest of its kind in southern China and consists of 4 terminals: one 80,000-tonne terminal, one 10,000-tonne terminal and two 1,000-tonne terminals. Since entering operation in November 1998 through to the end of 2020, West Zhuhai Jetty and Storage Terminal handled nearly 45 million tonnes of oil products and liquefied petrochemical products for its customers and principally for PetroChina.
West Zhuhai has a forward-looking and proactive staff. While adhering to PetroChina’s “Strategic Oil Products Reserve” strategy, West Zhuhai has also put its strengths into good use and actively developed a bonded business in recent years, laying a solid foundation for long-term, healthy and steady growth.
For more than 20 years, West Zhuhai has placed safety and customer satisfaction as its top priorities and provided quality service to its customers, principally PetroChina. It has long been the flagship fuel storage facility for the PetroChina group, establishing strong credibility in the storage market and bringing considerable returns for its shareholders.
5. International trading
Fortune Oil has over 20 years of international trading and supply of oil and gas products in China. The trading business encompasses crude oil, oil products, diluted bitumen, mixed aromatics and LPG.
Fortune Oil has trading offices in Beijing, Guangzhou, Zhuhai and Zhoushan. Our professional trading team has established a comprehensive petroleum and petrochemical products trading and distribution network, handling imports, exports and domestic distribution of various petroleum products. With its corporate strength and quality service, Fortune Oil’s trading business enjoys a good reputation in China’s petrochemical industry and maintains sound business partnerships with domestic as well as international suppliers and customers.
With its sales network and financial advantage, Fortune Oil imports crude oil and petroleum products for customers in southern China, Shandong and Guangdong. In FY 2019, Fortune Oil sold over 1.4 million tonnes of crude oil, and trade volume reached US$650 million.
To develop new business opportunities in the fields of liquefied petroleum gas ("LPG"), liquefied natural gas ("LNG") and other liquid cargo vessel transportation management and associated businesses, China Gas Fortune Marine Transportation Limited, a new company jointly owned by Fortune Oil Limited and China Gas Holdings Limited was established in December 2017. The two 84,000m3 VERY LARGE GAS CARRIERS (“VLGCs”) ordered by China Gas Fortune Marine Transportation Limited from Shanghai Jiangnan Shipyard were delivered and entered normal operations in May and July 2020 respectively. The operation of these two ocean-going LPG refrigeration vessels will strengthen China Gas’s LPG business across the international LPG supply and trading market, enabling it to capture value across the entire LPG trade value chain and obtain new competitiveness and development opportunities. This is a major new milestone in the development of China Gas's LPG business.