In 1865, the gas predecessor, the (British ) Shanghai Gas Company was formed to provide gas lighting for the town. So the history of Shanghai Gas dates back to more than 140years ago. In 1952, the number of domestic gas consumers in Shanghai was 17,315, which meant a gas penetration of 1.4% in domestic sector.

In 1952, the (British) Shanghai Gas Company was taken over by the government who changed its name to Shanghai Municipal Gas Company, exercise centralized management of entire gas business in Shanghai from production, supply to marketing, and rapidly extended the gas supply network for cooking and heating.

In 1997, Shanghai Municipal Gas Company was demerge into two companies, Shanghai Gas Business (Group)Co.,Ltd with four gas works and Shanghai Gas Manufacturing (Group)Co.,Ltd.with 3.4million gas customers and 7000km distribution pipeline network.The reorganization reflects the realities of the deregulation and compatition in gas market.

In 2000, Shanghai Gas Business (Group)Co.,Ltd was separated into three gas transmission and supply enterprises, South Shanghai Gas Co.,Ltd , North Shanghai Gas Co.,Ltd, and Shanghai Pudong gas Co.,Ltd.

In 2001, South Shanghai Gas Co., Ltd., a state-owned company whose only shareholder was Shanghai Municipal Assets Operation and Development Co., Ltd., introduced a new partner, Shanghai Dazhong Public Utility(Group)Co., Ltd.. Each partner occupies 50% share respectively. The enterprise is renamed Shanghai Dazhong Gas Co., Ltd. accordingly.

In 2003, Dazhong Gas was merged into Shanghai Gas (Group) Co.,Ltd. Shang Gas Group and Shanghai Dazhong Public Utility Group occupy its 50% share respectively.