ADB, HTL sign loan for 'last-mile' gas distribution

The Asian Development Bank signed a $50 million loan agreement with Henan Tian Lun Gas Group Ltd to provide last-mile natural gas supplies to about 630,000 residential and commercial consumers in Henan province.

ADB's support will help HTL and its five operating subsidiaries sustain operations and support China's economic rebound from COVID-19. Natural gas is used by residential consumers primarily for heating and cooking, and by commercial and industrial consumers for heat generation and industrial processes. The government has urged utility services to ensure uninterrupted supplies to sustain economic and social activities as communities recover from pandemic lockdowns.

"Disruption of local natural gas supplies can prompt people to burn wood and coal, which would erode progress toward cleaner fuels and adversely affect air quality and physical health," ADB's Jackie B. Surtani said.

"The reliable gas supplies supported by ADB's assistance will reduce incentives to burn wood and coal while reducing the cost of and improving access to energy for residential, commercial and industrial users," he said.

ADB said the project will provide single-mother households with access to energy on favorable payment terms, and free supplies of childcare products under a gender action plan.

Single mothers usually have low wages and lack social safety nets. The pandemic has magnified these and other inequalities for women by increasing their domestic duties and reducing labor mobility. Use of fuels such as gas can reduce the burden of household labor on women and increase workforce participation.

"Henan Tian Lun Gas Group's success has been possible through the support of many partners but especially from the earned trust of financial institutions like ADB," China Tian Lun Gas Group Chairman Zhang Yingcen said. "We value ADB's support as it inspires us to continue our commitment to provide affordable access to energy."

HTL is one of the largest providers of piped gas in China, with 67 city projects in 16 provinces, 4.2 million residential consumers and more than 28,000 industrial and commercial users. HTL is a wholly owned subsidiary of China Tian Lun Gas Holdings Ltd, one of the first non-state-owned enterprises established in China's urban gas sector.