China’s government continue to implement coal to gas switching policy, which leads to an increase in the demand of natural gas. In order to prevent gas shortage from happening again, The NDRC recently released some policies to boost the development of the natural gas industry. For the supply of natural gas, The NDRC is working with state oil companies to design a plan for creating a national natural gas pipeline company that will cut down transportation costs and guarantee stable gas supply. Also, the Arctic LNG development project is scheduled to supply 4 million tons of LNG to China annually from 2019 onwards, which equals to 19% of national natural gas consumption in 2016. It is expected to solve the gas shortage problem effectively. On the other hand, the NDRC set a storage target this April which states that gas suppliers – mainly state-owned companies will be required to have storage facilities able to meet at least 10 percent of their contracted sales by 2020, while city gas distributors must have storage equal to 5 percent of their annual supplies within the same time frame. This policy ensures gas suppliers import enough LNG during off season with a reasonable price instead of paying a high price in winter. With the rising demand and a more stable supply of natural gas, more revenue will be brought to gas suppliers. ENN energy (2688) has been engaged in the urban pipeline gas business from 1992. It has four core businesses - natural gas sales, integrated energy service, energy trade, and energy transmission and distribution. ENN’s LNG import terminal in Zhoushan will be ready in the second half of 2018. It can increase the stability of gas supply in winter and still maintain a decent profit margin. We recommend investors may accumulate ENN as medium/long term investment.