HONG KONG, CHINA - MediaOutReach - 4 July 2018 - Beijing Gas Blue SkyHoldings Limited("the Company" or "Beijing Gas Blue Sky", together with itssubsidiaries, the "Group", HKSE stock code: 6828) is pleased toannounce that, the Company entered into a non-binding strategic cooperationagreement (the "Strategic Cooperation Agreement") with Guizhou Branch ofPetroChina KunLun Gas Co., Ltd. ("KunLun Guizhou Co.") to create a strategiccooperation relationship between the parties.

Pursuant to theStrategic Cooperation Agreement, the parties have agreed the following:

(1)   If the investment of the gas pipelinebusiness of KunLun Guizhou Co. in a place where the Company's city gas businessis located, the project will be controlled by KunLun Guizhou Co. and investedby the Company;

(2)    Developing and investing in city gas projectsjointly which will then be controlled by the Company;

(3)   For those city gas project which has beenmutually agreed by the parties, the Company may acquire the enterprise andthereafter evaluate the cooperation with KunLun Guizhou Co. by usingreplacement cost approach; and

(4)   Developing the LPG business in GuizhouProvince, including but not limited to trading of LPG business, LPG refuelingretail business, acquisition and merger of LPG business, subject to specificnegotiations between the parties on individual project.

KunLun Guizhou Co. isthe sole financing platform, investment vehicle and management platform fordownstream natural gas business of natural gas segment of PetroChina KunLun GasCo., Ltd. in Guizhou Province. KunLun Guizhou Co. is principally engaged in thedevelopment, project construction and operation of natural gas businesses forresidential, commercial and industrial use in Guizhou Province.

Mr. TommyCheng, Co-Chairman and Executive Director of the Group said that "With theimplementation of air pollution prevention and 'coal-to-gas' plans by the PRCgovernment, the demand for natural gas has been increased rapidly in GuizhouProvince. The entering into the Strategic Cooperation Agreement enables bothparties to jointly invest and develop projects through existing sub-gaspipeline business and city gas business, including merger and acquisitions ofdownstream city gas projects based on replacement cost approach. The Companyand Kunlun Guizhou will also actively explore the LPG market in GuizhouProvince to enhance the Company's market share in Guizhou Province, optimizethe synergy benefits among various business segments, facilitate the strategicdevelopment of full natural gas value chain in Southwest region of the PRC andfurther strengthen the cooperative relationship between the Company and KunlunEnergy following the LNG supply agreement entered in May 2018."

About Beijing Gas Blue SkyHoldings Limited

Beijing Gas Blue Sky HoldingsLimited ("Beijing Gas Blue Sky", HKSE stockcode: 6828) is an integrated natural gas provider, distributor and operator,with an emphasis on the midstream and downstream natural gas development. Ournatural gas business includes: (i) construction and operation of compressednatural gas ("CNG") and liquefied natural gas ("LNG") refueling stations forvehicles; (ii) construction of natural gas pipelines and operation of city gasprojects by providing piped gas; (iii) direct supply of LNG to end-users; and(iv) trading and distribution of CNG and LNG.

The Group has adapted to the"One Belt One Road" policy, and focus on operating and investing natural gasbusiness. The Group is actively expanding its business development anddistribution, as well as continues to gradually expanding the scale ofoperations. Currently, the Group has business presence in several provinces inNortheast China, East China, Central South China and Southwest China, includingLiaoning Province, Jilin Province, Shandong Province, Shanxi Province, AnhuiProvince, Zhejiang Province, Hubei Province, Guizhou Province, Sichuan Provinceand Hainan Province, etc. The Group is committed to its vision: "developclean energy, enhance customer value, create a beautiful blue sky". In thefuture, it will continue to actively investing and developing natural gasbusiness, as well as participating in the development of natural gas industryvalue chain.