Beijing, People’s Republic of China (23 April 2025 News Release) — The Asian Development Bank (ADB) and Henan Tianlun Gas Group Co., Ltd. (Henan Tianlun) signed a $125 million equivalent loan package to finance the rehabilitation and upgrading of aging gas distribution pipelines in five provinces of the People’s Republic of China (PRC) to reduce methane leaks.

The loan package consists of a $100 million loan from ADB and a $25 million complementary syndicated loan for which ADB acted as the mandated lead arranger and bookrunner. The complementary syndicated loan, a local currency cofinancing product, offers diverse tenors and mitigates exchange rate risks. Participating banks include Fubon Bank (China) Co., Ltd. Beijing Branch and Korea Development Bank Beijing Branch. The financing will support gas pipeline upgrades across 10 cities in five provinces to minimize methane emissions—a potent greenhouse gas.

The project will install smart gas meters and digital sensors for at least 500,000 residential users to enhance safety and enable real-time operational monitoring. In case of gas leaks, smart meters will remotely shut off valves, while digital sensors along repaired pipelines will alert operational centers to potential leakage issues.

"With ADB’s support, these upgrades are expected to significantly reduce methane emissions from gas distribution networks, ensuring the safety of the 'last mile' of gas delivery and improving services for end-users," said ADB Country Director for the PRC Safdar Parvez. "We are pleased to partner with Henan Tianlun to enhance energy distribution efficiency through improved energy infrastructure."

Due to population growth, energy demand—particularly for heating—has risen substantially in urban areas across China. As the world’s largest methane emitter, China saw its energy sector account for nearly half of the country’s total methane emissions in 2022. By minimizing methane leaks, the project is expected to reduce greenhouse gas emissions by at least 190,000 tons of CO₂ equivalent annually.

ADB’s financing has been certified as "green credit" by United Credit Ratings Co., Ltd., aligning with the PRC’s Green Industry Guidance Catalogue (2019 Edition) and *Green and Low-Carbon Transition Industry Guidance Catalogue (2024 Edition)*.

"Henan Tianlun is committed to providing safe, modern, and reliable energy services to households," said Xian Zhenyuan, Director and General Manager of Henan Tianlun. "We highly value ADB’s support in expanding our business’s environmental, social, and gender impact, and we look forward to sharing our expertise in gas safety and energy efficiency with the broader energy sector."

Established in 2004, Henan Tianlun is a leading urban gas operator in China, serving 67 cities with over 9,500 kilometers of gas pipelines and supplying 3.83 million residential users nationwide.

ADB is a key multilateral development bank dedicated to fostering sustainable, inclusive, and resilient growth across Asia and the Pacific. In collaboration with its members and partners, ADB addresses complex challenges through innovative financing and strategic partnerships to improve lives, build high-quality infrastructure, and protect the planet. Established in 1966, ADB has 69 members, including 49 from the region.