Location and Accessibility:

1. The project is located in Dushupu Village, Taiping New Town, Anning City, 12 kilometers away from Anning City and 21 kilometers away from Kunming City. It is located in the central area of Yunnan Province. The oil supply can cover the entire Yunnan Province, Liupanshui area in Guizhou, and Panzhihua area in Sichuan.
2. The National G56 Hangrui Expressway and Anshi Highway pass through the lower side, about 900 meters away from Dushupu Railway Freight Station (the largest railway freight distribution station in western Kunming). Trains transport goods to the station through oil pipelines to the oil depot.
3. The Yunnan Central Transfer Station of the National Oil Pipeline Network is about 200 meters away from the project site, and its oil pipeline network is about 100 meters away from the project site. Due to the location and scale advantages of the oil depot, the Yunnan Central Transfer Station of the National Oil Pipeline Network agreed to connect the oil pipeline to the oil depot. 90% of private oil depots cannot enjoy this advantage, and the cost of oil transportation through the pipeline network is about 200 yuan per ton higher than that of railways.

​

Market demand:

Overall market situation
1. Yunnan's refined oil consumption has grown steadily With the comprehensive development of Yunnan's economy and society, refined oil sales have steadily increased, from 10.0176 million tons in 2017 to 15.3668 million tons in 2022, with an average annual growth rate of more than 5%.
2. Development of finished product wholesale and storage enterprises in Yunnan Yunnan has 38 oil depots, 2 of which are under relocation, 1 is under expansion, and 8 are under renovation. The storage capacity in normal operation is 106.48 m³ (750,000 cubic meters in 2010), an increase of 41.97%. Among them, Sinopec has 12 depots with a storage capacity of 52.31 m³; PetroChina has 7 (including 1 relocation and 1 new construction) with a storage capacity of 297,000 m³; other enterprises have 10 depots with a storage capacity of 24.47 m³. Calculated based on 10 turnovers per year, the annual supply capacity of the in-use storage capacity is 6.81 million tons, which can only meet the short-term demand for finished oil in Yunnan Province, which is far from the plan of Yunnan's "13th Five-Year Plan" to "reach 2.5213 million cubic meters of oil depots by 2020".
3. Yunnan’s existing finished product wholesale warehousing also has serious problems:
(1) The storage capacity of individual oil depots is small, the facilities are aging, there are few large-scale oil depots, and the distribution efficiency is low.
(2) The procedures for building an oil depot are complicated and there are many processes involved. It is also difficult to acquire land, making it difficult to build an oil depot.

Market network situation (according to the 13th Five-Year Development Plan for the Finished Oil Distribution System in Yunnan Province 2015-2020)
1. Oil depot network in Yunnan Province Oil depot distribution: Kunming (15 depots, 545,400 m³), Qujing (5 depots, 200,000 m³), Dali (3 depots, 172,000 m³), Yuxi (1 depot, 67,100 m³), Chuxiong (2 depots, 52,000 m³), Zhaotong (2 depots, 18,300 m³), Xishuangbanna (1 depot, 10,000 m³), with an existing storage capacity of 1,064,800 cubic meters, and unreasonable distribution, low distribution efficiency, which cannot meet the needs of economic development.
The 13th Five-Year Plan plans to reach an oil depot capacity of 2.5213 million cubic meters by 2020. There are only 8 months left in the last year of the 13th Five-Year Plan, and 50% of the planned oil depot capacity has not been reached. This shows that due to the high requirements for environmental protection, safety, fire protection, etc., the site selection and procedures are difficult.
2. Gas station network in Yunnan Province
At the end of 2015, there were 3,703 gas stations: 1,192 belonged to Sinopec, accounting for 32.19%; 599 belonged to PetroChina, accounting for 16.17%; 101 belonged to other state-owned enterprises, accounting for 2.73%; and 1,811 belonged to private enterprises, accounting for 48.91%.
They are located in: Kunming (516), Qujing (444), Yuxi (213), Baoshan (210), Zhaotong (230), Lijiang (119), Pu'er (288), Lincang (185), Chuxiong (202), Honghe (350), Wenshan (244), Banna (188), Dali (236), Dehong (173), Nujiang (40), and Diqing (65).
The 13th Five-Year Plan plans to have 6,181 gas stations by 2020 (792 in Kunming), an increase of 2,476 from the 12th Five-Year Plan, a growth of 40.1%.
The increasing number of gas stations has increased the demand for oil depots. In addition, the country has to increase the construction of infrastructure projects worth trillions of yuan in Yunnan every year, and the construction needs to be guaranteed by gasoline and diesel. Countless oil dealers from inside and outside the province have seen the Feng Shui treasure land of Yunnan Oil, and they all want to come to Yunnan to find oil storage depots to share this cake.
There are at least dozens of small and medium-sized oil companies and gas stations in the province that are eager to be built by our company. I will not introduce them one by one here. The above shows that it is important and urgent to build a large-scale modern oil depot.

​

​