Net Zero Roadmap

We have set an overall target of achieving carbon peaking by 2030 and net zero emissions by 2050. As an ambitious stretch target, we aim to advance our carbon peaking bg 2027 and realise net zero emissions across our LPG business, urban gas business and branch pipeline business by 2035.

Addressing Climate Change

Kunlun Energy upholds a profound sense of responsibility and a mission of industry leadership. We treat climate adaptation and mitigation as dual engines driving our net zero transition.

  • Climate
    Governance
  • Climate
    Strategy
  • Climate Risk
    Management
  • Risks and Opportunities
    Inventory
  • Metrics and
    Targets

  • Kunlun Energy has established a sustainability governance framework with the Board of Directors* serving as the highest decision-making body. On a quarterly basis, the Board* reviews progress on various sustainability issues, including climate management.

  • Kunlun Energy has incorporated green and low-carbon principles into the overall development strategy and the overarching “15th Five-Year Plan.” The Company has upgraded the identification and assessment of climate-related risks and opportunities into a normalised mechanism. We perform multiscenario financial impact calculations for identified climated-related risks and opportunities and strengthen climate resilience assessments to ensure the robust development of the enterprise in addressing climate change challenges.

  • Kunlun Energy consistently integrates the management of climate-related risks and opportunities into all aspects of corporate operations. The Company explores the integration of climate change risk management into the existing risk management closed-loop system. Following the process of “Risk Identification – Risk Analysis – Risk Assessment – Risk Mitigation – Monitoring and Review”, we comprehensively evaluate management strategies, solutions, and oversight plans for 32 categories of climate-related risks and opportunities.

  • Kunlun Energy has established carbon dioxide emissions and methane emissions as the core indicators for the "Dual Carbon" goals. These indicators are progressively broken down and tracked on an annual basis to ensure the effective and substantive implementation of the Company’s greenhouse gas emission reduction measures. Completion status of goals and indicators

Efficient Resource Utilisation

Adhering to our core philosophy of “Upholding Green and Low-carbon Growth, Achieving High-quality Development, and Building a Beautiful Ecosystem,” Kunlun Energy promotes meticulous resource management. We are actively constructing a comprehensive low-carbon energy management system across our entire value chain, fully integrating energy conservation and consumption reduction into every facet of our operations. By continuously enhancing resource utilisation efficiency, we aim to inject powerful momentum into the green transformation of the gas industry.

  • 2025 Key Performance Indicators

    The Company completed
    50distributed photovoltaic projects
    generated
    17,640MWh of electricity
    with an installed capacity of
    7.27MW
    achieving a self-consumption rate of
    58.62%
    As of the end of 2025, a cumulative total of
    107distributed photovoltaic
    projects were in operation
    with a total installed capacity of
    20.8MW
    In 2025, renewable energy consumption reached
    1,487,169.89MWh
    accounting for
    48.19%
    electrification rate
    66.14%
    Added
    5new natural gas power generationr projects
    with
    3,719MW
    of new installed capacity
    Hold equity in
    21natural gas power
    generationr projects
    with a cumulative installed capacity of
    14,745MW
BOG Reliquefaction and Energy-Saving Retrofit at Guang’an LNG Plant
In 2025, Kunlun Energy’s Guang’an LNG Plant implemented an energy-saving retrofit for BOG reliquefaction, enabling the recovery and reliquefaction of BOG generated during storage and production. The project features the cascaded recovery of cryogenic cold energy carried by the BOG, which is utilised for the pre-cooling of feed gas at the cold box inlet. By substituting traditional refrigeration systems with this recovered cold energy, the plant achieves an annual electricity saving of approximately 990 MWh, resulting in a reduction of 531 (tCO₂e) emissions per year.

Implementing Green Operations

Kunlun Energy actively translates the philosophy that “A sound ecosystem is a priceless asset and a source of sustainable wealth” into concrete action. Committed to a path of green development, the Company continuously enhances the environmental governance efficiency through systematic environmental remediation, precision-targeted pollution prevention, and the creation of “Green Enterprises.” Our goal is to ensure that corporate development resonates in harmony with ecological progress, fostering a future of symbiotic coexistence between industry and nature.

  • Environmental Management System

    Kunlun Energy has established and maintains the ISO 14001 Environmental Management System certification. We have appointed the QHSE Committee as the leading decisionmaking body for environmental management, responsible for the integrated oversight of the Company’s ecological and environmental protection initiatives. The Quality, Health, Safety, and Environment (QHSE) Department is designated as the executive body responsible for the specific implementation of environmental management, ensuring that all ecological requirements are effectively executed.

  • Environmental Governance

    Kunlun Energy has formulated and implemented the 2025 Action Plan for Pollution Prevention and Control, dynamically manages the pollution source inventory, develops key pollution prevention and control plans, and systematically deploys corresponding measures, so as to ensure the achievement of the overall goal of “continuously reduce the intensity of pollutant emissions and gradually increase the waste recycling rate.” In 2025, the Company completed the installation of 50 sets of online pollutant monitoring equipment.

Green Products and Services

The Company vigorously promotes the implementation of integrated natural gas and new energy development projects as well as integrated energy projects. We actively explore emerging businesses such as hydrogen-enriched natural gas and bio-natural gas to accelerate the formation of new quality productive forces, promote the creation of a green integrated energy supply system, and contribute to the accelerated construction of a modern energy system.In 2025, renewable energy generation reached 18.21 million kilowatt-hours, resulting in carbon emissions reductions of approximately 15,000 metric tons of standard coal, driving the low-carbon transition with green electricity.*
*New energy generation includes both self-generated and self-consumed electricity and electricity supplied to the grid; carbon reduction is calculated using the carbon emission factor for thermal power generation of 0.8273 kg CO₂/kWh.
*The scope of green products and services is determined with reference to the lists of green‑low‑carbon transformation industries and green‑finance‑supported projects set forth in the Catalogue for Guiding China’s Green and Low‑Carbon Transformation Industries (2024 Edition) and the Catalogue of Projects Supported by Green Finance (2025 Edition)

Key Technology Research and Demonstration Application Project for HydrogenEnriched Natural Gas Utilisation in Industrial Parks
In August 2025, Kunlun Energy’s “Key Technology Research and Demonstration Application Project for Hydrogen-Enriched Natural Gas Utilisation” in the Old Urban Area Industrial Park of Yumen City, Gansu Province, successfully commenced trial operations.Addressing the challenges of new energy consumption in Gansu, the project converts surplus wind and solar power into hydrogen and related derivative products through water electrolysis. It achieves the full-chain commercial application of hydrogen energy—covering “production, storage, transport, and utilisation”—via hydrogen-enriched pipeline transmission. Based on an estimated annual gas consumption of 10 million cubic metres in Yumen’s old urban area and a 20% hydrogen blending ratio, the project is expected to reduce carbon emissions by approximately 1,600 tonnes per year, equivalent to planting about 80,000 trees.
Hong Kong's First Ship-to-Ship LNG Bunkering Operation
On February 14, 2025, Kunlun Energy completed Hong Kong's first ship-to-ship LNG bunkering operation, supplying 2,200 tonnes of LNG fuel to the ZIM AQUAMARINE container vessel. This operation marked the first direct supply of bonded LNG across customs zones within the Guangdong-Hong Kong-Macao Greater Bay Area. It innovatively established an integrated “Shenzhen storage + Hong Kong bunkering” model, contributing to the green transformation of the shipping industry.

Building a Strong Ecological Barrier

Kunlun Energy adheres to the principle of “protection through development and development for protection,” integrating biodiversity conservation into our daily production and operational processes. By exploring conservation pathways and continuously enhancing our protection standards, the Company aims to achieve harmonious coexistence between business growth and the ecological environment. We plan to identify and analyze biodiversity risks, opportunities, impacts, and dependencies across the Company’s overall operations, diverse business lines, and specific operational sites in 2026, in accordance with the Taskforce on Nature-related Financial Disclosures (TNFD) framework. Furthermore, we intend to publish a dedicated Biodiversity Conservation Report. We have established a four-tier governance system of “supervision, decision-making, collaboration, and execution” to systematically advance biodiversity protection efforts. Kunlun Energy integrates biodiversity protection requirements throughout the entire project lifecycle, minimizing construction disturbances and ensuring precise pollution prevention and control, striving to achieve net zero biodiversity loss.

Fujian LNG Receiving Terminal project
Kunlun Energy’s Fujian LNG Receiving Terminal project is located in Fuqing City, a national-level ecological city with stringent and complex environmental protection requirements. The Company adheres to the principles of “protection first” and “process control,” coupled with multi-party synergy, to effectively achieve biodiversity conservation.Prior to the commencement of works, protected flora and relevant trees within the planned land area were transplanted, and existing bird nests were relocated for protection. Furthermore, measures such as restoring and replanting grasslands, providing land free of charge, and constructing rural farm tracks were implemented to safeguard the production and ecological needs of local villagers. During the construction period, the Company systematically carried out biodiversity conservation in marine areas, comprehensive protection against soil erosion, recycling of water resources, the construction of vegetative ecosystems, and the establishment of ecological protection barriers. These actions ensured the all-encompassing protection of the ecological environment at the construction site and the surrounding areas.

Summary of Environmental Data

  • Climate Change
  • Energy Use
  • Emissions

  • Greenhouse Gas EmissionsMethane Emissions

  • Atmospheric PollutantWastewaterSolid Waste

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