China Oil & Gas (00603) announced that in May 2026, the company entered into a strategic cooperation agreement with Shandong Ronghui Products Group Co., Ltd. (Shandong Ronghui). The agreement is centered around the company's subsidiary, Jining Zhongtai Coal Chemical Co., Ltd. (Zhongtai Coal Chemical), with the aim of establishing an integrated upstream and downstream linkage model.

Shandong Ronghui intends to collaborate on businesses related to natural gas liquefaction production. The resulting liquefied natural gas (LNG) products will be supplied for use in new energy LNG vessels manufactured and operated by Shandong Ronghui. Both parties will jointly explore the development of a comprehensive natural gas utilization pathway encompassing "production, bunkering, and application."

This cooperation includes collaboration in natural gas liquefaction, upstream resources such as natural gas, bulk commodity trading, supply chain finance, equipment financing leases, and LNG vessel sales with sale-leaseback arrangements. The two sides will study the integration of their respective resources and pipeline networks, exploring the feasibility of establishing diversified gas source channels. The goal is to jointly enhance gas source reserve capacity and market risk resilience, fostering long-term competitive advantages in the market.

Furthermore, this cooperation is expected to effectively promote the utilization efficiency of Zhongtai Coal Chemical's production capacity, extend the industrial chain, and increase industrial added value. It will provide strong support and make significant contributions to Shandong Province's "Gasified Canal" initiative, holding long-term significance for the company's high-quality and efficient development.