Binhai Investment : Announcements and Notices - Voluntary Announcement Natural Gas Entrusted Transmission, Measurement and Handover Four-party Agreement

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(Incorporated in Bermuda with limited liability)

(Stock code: 2886)

VOLUNTARY ANNOUNCEMENT

NATURAL GAS ENTRUSTED TRANSMISSION, MEASUREMENT AND

HANDOVER FOUR-PARTY AGREEMENT

This announcement is made on a voluntary basis by Binhai Investment Company Limited (the "Company", and together with its subsidiaries, the "Group").

The board of directors of the Company (the "Board") is pleased to announce that Tianjin TEDA Binhai Clean Energy Group Company Limited* ( ˂ݵइ༺Ᏽऎ૶ᆎঐ๕ණྠϞࠢʮ̡ ) ("TEDA Energy", formerly known as Tianjin Binda Gas Enterprise Company Limited* ( ˂ݵᏵ༺ዷंྼ ุϞࠢʮ̡ )), a wholly-owned subsidiary of the Company, entered into Natural Gas Entrusted Transmission, Measurement and Handover Four-party Agreement (the "Agreement") with Tianjin Sales Company of CNOOC Gas & Power Group Limited* ( ʕऎͩذंཥණྠϞࠢப΂ʮ̡˂ݵቖ ਯʱʮ̡ ) ¨( CNOOC Tianjin Company©), PetroChina Dagang Oil Fields Natural Gas Company* ( ʕ ਷ͩذɽಥذ͞˂್ंʮ̡ ) ("PetroChina Dagang Company", and together with TEDA Energy, the "Transmitting Companies") and Northern Branch of Natural Gas Sales Company of PetroChina Company Limited* ( ʕ਷ͩذ˂್ंٰ΅Ϟࠢʮ̡˂್ंቖਯ̏˙ʱʮ̡ ) ("PetroChina Northern Company") on 29 December 2017.

Pursuant to the terms of the Agreement, PetroChina Northern Company appoints the Transmitting Companies to transmit natural gas supplied by CNOOC Tianjin Company. The transmission volume of the Agreement is the gas transmission volume pursuant to the plan commercially agreed between CNOOC Tianjin Company and PetroChina Northern Company. The natural gas handover location between CNOOC Tianjin Company and TEDA Energy is the Lingang Distribution Station* ( ᑗಥ ʱ፩१ ) of LNG receiver station. TEDA Energy will through its pipelines transmit a certain part of natural gas to PetroChina Northern Company directly, and will transmit another part of natural gas to PetroChina Northern Company through the transmission by PetroChina Dagang Company. TEDA Energy will charge pipeline transmission fee from PetroChina Northern Company, the price of which is RMB0.12 per cubic metres (inclusive of value-added tax). It is learnt that during the peak supply period in the winter or emergency, subject to circumstances such as the transmission capability of the pipelines, the highest daily gas transmission volume can reach 500 million standard cubic metres.

According to the Notice on Preparation for Peak Consumption of Natural Gas in the Winter in 2017 (Fa Gai Yun Xing [2017] No.1813)* ( ᗫ׵ਂλ 2017 ϋ˂್ंڎࢤܓ̆ʈЪٙஷٝ€೯ҷ༶Б [2017]1813 ໮) dated 16 October 2017, the National Development and Reform Commission ( ਷࢕ ೯࢝ҷࠧ։ࡰึ ) proposes "speeding up the procedure for working on and connecting the Binda Gas Pipelines* ( Ᏽ༺ዷं၍ᇞ ) (the "Pipeline Project") between the Lingang Distribution Station* (ᑗ ಥʱ፩१ ) of LNG receiver station of CNOOC Tianjin Company and PetroChina Tianjin Dagangmen Station* ( ʕͩذ˂ݵɽಥژ१ )". The Pipeline Project has commenced operation since 6 December 2017. The operation of the Pipeline Project and the entering into of the Agreement will not only generate pipeline transmission fee to the Group, improve the value of the pipeline resources of the Group; but will also through the pipeline network of the Group achieve the connection of pipelines between CNOOC Gas & Power Group Limited and PetroChina Company Limited for the first time, effectively increasing the protection of gas supply in the northern part of China particularly the Tianjin area, and alleviating the lack of clean heat supply in the winter in the Beijing-Tianjin-Hebei area.

By order of the Board

Binhai Investment Company Limited

Gao Liang

Executive Director

Hong Kong, 29 December 2017

As at the date of this announcement, the Board comprises two executive directors, namely, Mr. ZHANG Bing Jun and Mr. GAO Liang, five non-executive directors, namely, Mr. SHEN Xiao Lin, Mr. ZHANG Jun, Mr. WANG Gang, Ms. ZHU Wen Fang and Ms. SHI Jing, and four independent non-executive directors, namely, Mr. IP Shing Hing, J.P., Professor Japhet Sebastian LAW, Mr. TSE Tak Yin and Mr. LAU Siu Ki, Kevin.

*

For identification purpose only