In order to carry out the "Twelfth Five Year" Plan for national economy and social development and the spirit of developing new energy by Shandong provincial government, Shandong provincial government has decided to promote the "gas in substitution of oil" project concerning liquefied natural gas (LNG) in the field of transportation within the province since 2011 with the goal of constructing low-carbon transport and protect ecological environment.

On August 2011, Kunlun Energy Investment Shandong Company Limited，which is wholly-owned by Kunlun Energy Company Limited, signed a "Strategic Cooperation Agreement of Liquefied Natural Gas (LNG) Projects" with Shandong Provincial Administration of Traffic and Transportation. According to the agreement, both parties will fully conduct the construction of LNG refilling stations on the "five vertical and four horizontal expressways", the "six vertical and three horizontal national highways" as well as the sea routes and river routes, relying on the land transport and water transport networks of Shandong province, so as to gradually form a layout system of LNG refilling station covering the transportation network throughout the whole of Shandong province.

Up to now, Kunlun Shandong completed the construction of 4 LNG refilling stations in Juxian service area and Heze service area of Rizhao-Lankao Expressway according to the agreement. Up to the end of 2012, the Company plans to construct 6 LNG refilling stations within the service areas along the expressways in Wudi, Taishan and Laiwu, and plans to construct 90 LNG refilling stations by stages in the expressway service areas and parking areas within the next five years. By then, the layout system of LNG refilling stations built by Kunlun Shandong will form a LNG green transportation network throughout the whole of Shandong province.

As a major economic Province in China, Shandong province has highly emphasized on promotion and application of new technology and new energy. As a substitute for gasoline and diesel oil, LNG has characteristics such as high quality, high efficiency, clean and environmental protection and has been gradually applied in the important fields of transportation and industry. Signing of the strategic cooperation agreement concerning LNG project between Shandong Provincial Administration of Traffic and Transportation and Kunlun Shandong represents that Shandong province has taken a solid step towards widespread promotion of the "gas in substitution of oil" project, and Kunlun Shandong will also fulfill its own duties to jointly make the contribution to building a systematic and well-developed LNG green transportation network within Shandong province.