China Gas: Empowering Change Through AI

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In recent years, China Gas Holdings Limited, a leading entity in the Chinese gas sector, has been making significant strides in integrating artificial intelligence (AI) technologies into its operationsWith the notable release of the indigenous large model, DeepSeek, in January 2025, the competitive landscape for AI has undergone a profound transformation globallyThis innovation has not only reshaped the way businesses approach AI but has also prompted China Gas to leverage its extensive industry experience, fostering a fusion of AI and various application scenarios.

China Gas has made remarkable progress in its operational safety and efficiency through the adoption of AI, enabling a sophisticated approach to risk managementFor instance, the company's proprietary Changming Bell system conducts uninterrupted big data analysis, generating approximately 250,000 warning messages annually, resulting in an impressive safety hazard resolution rate exceeding 98%. Furthermore, the AI-driven approval process has improved compliance checks with a remarkable 90% passing rate, significantly mitigating potential financial losses to over 10 million yuan.

The integration of AI with operational management platforms, visualization systems, and SCADA cloud platforms has also allowed China Gas to continuously monitor the operational status of over 100,000 devices in real timeAn outstanding predictive accuracy for faults has reached 88%, leading to a yearly decrease of 15,000 hours in downtime while diminishing the equipment failure rate by 30%. Notably, the quality compliance rate in welding processes has surpassed 98%, with quality incident rates declining by 45% compared to previous years.

AI's impact extends well beyond safety and reliability; it is proving to be a game-changing asset in enhancing corporate efficiency and cost managementFor instance, the legal team has benefited from AI contract reviews, with an automated risk point identification rate of 90% and a 30% increase in review efficiency, cutting down the contract review time by over an hour

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In human resources management, the use of AI has drastically reduced payroll calculation errors to a mere 0.05% while shortening performance evaluation cycles by 65%. Furthermore, AI is streamlining IT operations, where 90% of IT maintenance tickets are now sorted automatically, resulting in a 50% reduction in resolution times and a 60% increase in operational efficiency.

The customer service facet of China Gas has also witnessed a remarkable enhancement due to AIThe intelligent customer service system processes an average of 32,000 voice commands daily with a recognition accuracy of 91%, leading to a 35% reduction in staffing costs and a customer satisfaction rate of 93%. The AI digital persona, “Ran Xiao Zhi,” which merges voice with animated interactions, has achieved a user satisfaction rate exceeding 97%, while the image recognition technology for safety inspections processes 60,000 images daily with a staggering 99.7% accuracy, significantly decreasing manual review costs by 70%.

Moreover, AI has become instrumental in data-driven decision-making, optimizing resources effectively within the marketFor example, China Gas’s smart trading platform dynamically optimizes the matching of natural gas supply and demand, predicting a reduction in external contract purchases by 50%. Analyses assisting large customer accounts have helped in recouping monthly gas volume losses exceeding 2 million cubic metersThe Geographic Information System (GIS) introduced by China Gas has enhanced emergency response efficiency by 50% and automated quality inspections for pipeline data with a 100% coverage rateThe accuracy for underground pipeline mappings now stands at a perfect 100% reconstruction.

Looking ahead, China Gas has ambitious plans, setting a target for AI penetration in core operations to exceed 90% by 2025. The overarching goal is to establish a strong foundation for sustainable growth as the company embraces the continued evolution of AI technologies

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The dynamics of the world today present both unprecedented challenges and opportunities, compelling companies and nations to adapt swiftlyA failure to recognize AI's transformative power could result in obsolescence, while those who empower themselves with AI capabilities are poised to thrive in this paradigm shift.

During a recent conference marking the commencement of 2025, key figures from China Gas expressed their awe and insights regarding DeepSeek’s revolutionary implications for the gas industryLiu Minghui, the President and a board member, emphasized a renewed commitment to investing in AI research and development, aiming to merge cutting-edge technologies with real-world applicationsThe strategic goal is to further enhance operational safety, management efficiency, and customer services—ultimately fortifying the company’s industry leadership.

Within this transformative journey, the application of AI is not limited to operational improvements; it is also reshaping the company’s approach to user engagementThe leadership highlighted the necessity for all employees to familiarize themselves with AI models like DeepSeek, ensuring that the workforce evolves alongside the technology's advancementsIn the domain of commercial operations, the AI strategy has begun to yield significantly enhanced operational efficiencies, enabling the commercialization of AI-driven products within various sectors of the business.

Beyond operational efficiency, safety management is evolving with AI; comprehensive early warning systems utilizing big data analytics are being constructedThese systems monitor critical parameters, such as overdue safety inspections and customer interactions, a game-changer for preemptively addressing potential risks and ensuring public safetyMoreover, the billing and meter reading processes are undergoing AI-enhanced transformations that utilize predictive analytics to tailor services accurately according to customer consumption patterns, all while reducing human errors and boosting reliability.

Han Peng, the General Manager of the Digital Development Department at China Gas, articulated the vision that AI extends beyond just a technological tool; it is a central engine for restructuring the industry ecosystem

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The goal is to transition from an experience-driven model to a data-driven paradigm, setting up frameworks that exemplify security, efficiency, and GREEN initiatives for future energy systems.

AI deployment represents not only an opportunity for China Gas but a commitment to ushering in a smarter energy landscape that benefits society at largeWith planned investments exceeding 300 million yuan, the focus will center on three main areas: digital twin mid-platforms, low-carbon intelligent operations, and comprehensive user experience enhancementsOver the next three years, predictions suggest that AI's penetration in core operations will exceed 90%, supporting a further 20% cut in operational costs.

The digital twin initiatives are particularly noteworthy, targeting sustainability and systematic efficiency across a vast infrastructure network that spans over 80% of the nation's pipelinesThis project is imperative in optimizing real-time operational simulations and intelligent regulatory frameworks, paving the way for cost savings and resource conservation as they pursue the dual carbon goals.

AI also stands as a beacon of transformation from preemptive risk management to resource allocation, propelling China Gas’s holistic digitalization strategy forwardThe advances represented by DeepSeek signal a fresh wave of enthusiasm for AI in China, reinforcing a plethora of exemplary instances of practical AI applications within the gas sector that not only affirm the viability of these technologies but also broaden the horizon for innovative potential within the convergence of AI and green energy.

Liu Minghui reiterated the urgency of this transformation, stating, “The rapid evolution of AI is fundamentally reshaping the gas sectorAs pioneers in this industry, we recognize that AI is not just a tool but a core driver of industry change and national strategic initiatives.” He emphasized the indispensable role of the gas sector in public welfare and the inherent responsibility to shape a safer, smarter energy future

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