Sinopec Yu Ji Pipeline CompanyLimited, a limited liability company incorporated in the PRC on 27 October 2014,owns Yulin, Shaanxi Province-Jinan, Shandong Province Natural Gas TransmissionPipelines of about 944.93 km long, which pass through four provinces includingShaanxi province, Shanxi province, Henan province and Shandong province, thePRC, and the ancillary facilities and its operations commenced in around October2010.

The trunk line was builtwith a designed annual transmission capacity of 3 billion cubic meters (“bcm”),and upon completion of the compression upgrade project for Yulin - Jinan PipelineProject, it is expected that the annual transmission capacity will be increasedto 5 bcm. It is estimated that the compression upgrade project will becompleted by the end of 2015 and further capital commitment for such projectwill be approximately RMB380 million. The pipeline transmits the natural gasproduced at Sinopec Group’s Daniudi Gas Field in NorthChina’s Ordos Basin, which is the state-owned company’s second-largest gasfield project, and the natural gas is being directed to residential, commercialand industrial users in Jinan.