HONG KONG, CHINA - Media OutReach - 2 September 2019 -Beijing Gas Blue Sky Holdings Limited("the Company" or "Beijing Gas Blue Sky", together with its subsidiaries, the"Group", HKSE stock code: 6828) is pleased to announce that, the Companyentered into cooperation framework agreements (the "Cooperation Agreements")with China Sam Enterprise Group Co.,Ltd. ("China Sam"), a national high-tech enterprise, and Changchun Sinoenergy Corporation ("SinoenergyCorp"), a company listed on the Shanghai Stock Exchange.

DETAILS OF THECOOPERATION AGREEMENTS

Cooperation with China Sam

The Company entered into a cooperation agreementwith China Sam to establish a comprehensive strategic cooperation in terms of,among other things, (i) establishment of a close business relationship; (ii)exploration of the opportunities on the Belt and Road Initiative; (iii)establishment of fund for the merger and acquisition of companies in naturalgas industry; (iv) utilisation of the Chaozhou and Jiangyin liquefied naturalgas ("LNG") receiving terminals invested by Sinoenergy Corp to secure low costand stable supply of LNG; and (v) collaboration on oil and gas exploration,etc.

Founded in 1985 and headquartered inBeijing, China Sam is a national high-tech enterprise. The businesses of ChinaSam and its subsidiaries cover energy, chemical, investment, internationaltrade, film and security etc. Shenyu Chemical Oil & Gas Co., Ltd., anindirectly-owned subsidiary of China Sam, became the actual controller ofSinoenergy Corp in July 2019.

Cooperation withSinoenergy Corp

The Company also entered into a cooperationagreement with Sinoenergy Corp to establish a comprehensive strategiccooperation in terms of, among otherthings, (i) collaboration on energyproject; (ii) establishment of a close business relationship in relation tologistic and trading of energy resource and LNG supply; and (iii) collaborationon oil and gas exploration, etc.

Sinoenergy Corp is a company listed on theShanghai Stock Exchange (Stock code: 600856) and is principally engaged in theproduction and sales of oil and natural gas, development, manufacture and salesof natural gas storage and transportation equipment, mergers and acquisitions,investment and operation of overseas oil and gas assets, and importdistribution of overseas natural gas and crude oil related products.

Sinoenergy Corp has two LNG receivingterminals that are located in Yangtze River Delta economic belt and Pearl RiverDelta economic belt respectively. The two receiving terminals are scheduled toput into operation at the end of 2020 and it is expected that their processingcapacities each will increase to 2 million tons per year in 2025. In addition,Sinoenergy Corp owns several oil and gas fields in North America with a totalof billions of barrels of geological reserves. In terms of natural gasproduction and sales, Sinoenergy Corp has about 20 gas stations in Hubei andJiangsu with an annual sales volume of over 100 million cubic meters, and hasabout 40 LNG industry direct supply projects in Zhejiang and Jiangsu with anannual sales volume of over 600 million cubic meters. For the LNG plant inWuhan, it is expected to have a daily output volume of approximately 500,000cubic meters after putting into operation.

BENEFITS OFENTERING INTO THE COOPERATION AGREEMENTS

In the upstream gas source procurement

The Company successfully participated inthe import and distribution of international LNG in 2018. By cooperating withCNOOC Limited ("CNOOC"), the Company imported a shipment of LNG ofapproximately 60,000 tons via CNOOC's receiving terminals. Leveraging on theCompany's advantage of established whole LNG industry chain, the project gainedgood profit and was well received in the industry. Just seeing the Company'sexperience in international gas source procurement and domestic tradedistribution, China Sam and Sinoenergy Corp hope to maximize the developmentvalue of the LNG resources they have already owned. Through this cooperation, theCompany will rely on a total of annual 4 million tons LNG loading and unloadingcapacities (under full capacity) of Sinoenergy Corp's Jiangyin receivingterminal and Chaozhou receiving terminal in the Yangtze River Delta and thePearl River Delta economic belts to take advantage of the internationalprocurement resources and experience and gain greater bargaining power in internationalgas sources, so as to improve the pricing power and industrial influence ininternational procurement and domestic distribution.

In the midstream logistics channel

The Company itself has possessed thescheduling capability of more than 200 LNG tankers, which operate acrossBeijing-Tianjin-Hebei, Bohai Rim, the Yangtze River Delta and other regions. Bycooperating with China Sam and Sinoenergy Corp, the Company plays a protectiverole in LNG shipment, logistics, distribution and external vehicle deploymentfor its LNG receiving terminals, which ensures that the imported gas sourcesare distributed downstream within the prescribed period while enhancing theoperational efficiency of the Company's logistics vehicles and improving the profitabilityof its logistics and wholesale trading business.

In downstream terminal distribution

The Company currently depends on multiple LNG project companies inthe Yangtze River Delta and the Pearl River Delta regions, and haspossessed various direct LNG supply projects forindustrial end users. This cooperation will not only offer more guarantees forthe winter gas supply of the Company's terminal projects, but also helpthe Company to further improve its capability to develop moredirect LNG supply projects with the enriching gas resource supply.

In supply chain finance

During the implementation process of this cooperation, there will bea big demand for working capital as the business scale expands. TheCompany will depend on its existing supply chain financingcapability, continuously broaden the financial cooperation with financialinstitution supplychain, improve the Company'ssupply chain financing capability as a core enterprise, and coordinate withmore domestic LNG operators to establish supply chain financial platform ande-ommerce platform, improving the pricing power and the say in domestic LNGindustry while enhancing the Company's profitability in supply chainfinance.

The entering into of the cooperation agreements was based on thebackground of equity cooperation between China Sam and Sinoenergy Corp. Inorder to effectively facilitate the acquisition and merger process and trigger moresynergies and effects of complementary advantages, China Sam introduced the Companyto participate in the cooperation and made full use of the Company's operationexperiences and industry chain resources in the LNG business. Thus, the threeparties will leverage on their respective advantages, benefit mutually andcooperate, jointly developing the natural gas market. Based on thiscooperation, the  Company may utilizeSinoenergy Corp's Chaozhou and Jiangyin LNG receiving terminals to securestable LNG supply at low cost, strengthen midstream distribution capability,and enlarge the size of downstream end users, thus boosting the upstream anddownstream bargaining power and market share, improving the Group's business profitabilityand developing the cooperation space between the Company and Sinoenergy Corp inthe Mainland and Hong Kong capital markets.

Mr. Tommy Cheng,Co-Chairman, CEO and Executive Director of the Group said that "This cooperation is in linewith national industry policy orientation on natural gas, and will improve theprofitability and industry competitiveness of the LNG industry chain which theCompany has deployed for the past three years. Meanwhile, it will alleviate the gassupply tension in the Yangtze River Delta and Pearl River Delta, two major coreLNG consumption markets in China."

About Beijing Gas Blue Sky Holdings Limited

Beijing Gas Blue Sky Holdings Limited ("Beijing Gas Blue Sky", HKSEstock code: 6828) is an integrated natural gas provider, distributor andoperator, with an emphasis on the midstream and downstream natural gasdevelopment. Our natural gas business includes: (i) construction and operationof compressed natural gas ("CNG") and liquefied natural gas ("LNG") refuelingstations for vehicles; (ii) construction of natural gas pipelines and operationof city gas projects by providing piped gas; (iii) direct supply of LNG toend-users; and (iv) trading and distribution of CNG and LNG.

The Group has adapted to the "One Belt One Road" policy, and focus onoperating and investing natural gas business. The Group is actively expandingits business development and distribution, as well as continues to graduallyexpanding the scale of operations. Currently, t heGroup's natural gas projects covered 16 provinces, city and autonomous regionin the PRC, namely Liaoning, Jilin, Hubei, Hebei, Shandong, Anhui, Zhejiang,Shaanxi, Guizhou, Hainan, Guangxi, Guangdong, Ningxia Autonomous Region,Shanxi, Beijing City and Shanghai City. The Group is committed to its vision:"develop clean energy, enhance customer value, create a beautiful bluesky". In the future, it will continue to actively investing and developingnatural gas business, as well as participating in the development of naturalgas industry value chain.