Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Companies

    Oil majors go green, ramp up natural gas production

    By ZHENG XIN | China Daily | Updated: 2021-03-30 09:02
    Share
    Share - WeChat
    A Sinopec employee works at an offshore drilling platform in the South China Sea in February. [Photo/Xinhua]

    China's decarbonization drive prompts strategic repositioning of companies

    China's oil giants are planning to ramp up natural gas production and use more green, low-carbon methods to reach carbon neutrality, after their profits fell last year due to the COVID-19 pandemic and plummeting international oil prices.

    CNOOC Ltd, the listed arm of China National Offshore Oil Corp, one of the country's three major oil and gas companies, plans to continuously increase the supply of clean energy and promote the development and construction of key natural gas projects, responding to the general trend of energy transition. In addition to its gas reserves and production, which hit a record last year, the company will also step up new energy business with a focus on offshore wind power, it said.

    China Petrochemical Corp, or Sinopec, expects to spend 66.8 billion yuan ($10.18 billion) on upstream exploration focusing on shale gas development and construction of liquefied natural gas terminals in coastal areas, up from 56.4 billion yuan last year. The company has also pledged to achieve carbon neutrality 10 years ahead of the country's goal.

    PetroChina Co Ltd, the listed unit of China National Petroleum Corp, the country's largest oil and gas producer by annual output, said its marketable natural gas output stood at 113 billion cubic meters last year, up 9.9 percent on a yearly basis. The share of natural gas output rose to 47.2 percent of the total, which further enhanced the oil and gas output mix.

    All the companies reported lower profits last year, as the coronavirus outbreak dented fuel demand. PetroChina posted revenue of 1.93 trillion yuan, while the net profit attributable to owners of the company was 19 billion yuan. CNOOC Ltd said its revenue from oil and gas sales stood at 139.6 billion yuan, while net profit was 24.96 billion yuan. Sinopec said net profit fell by 42.9 percent to 32.92 billion yuan last year, the lowest since 2015, as the pandemic-related monthslong lockdowns crimped fuel demand and consumption.

    Industry experts expect oil majors to focus more on clean fuels like natural gas as oil demand is set to fall due to the country's decarbonization drive.

    Li Ziyue, an analyst with BloombergNEF, said although the Petro-China and CNOOC saw a 60 percent drop in annual profit after the pandemic-induced demand and price crash, they are still committed to enhancing production, especially natural gas output this year, given that energy security is the top priority.

    "PetroChina is set to become the biggest spending driller in the world with 239 billion yuan in annual capital expenditure, exceeding all global peers. CNOOC also envisions a massive boost in spending and production to 90 billion yuan to 100 billion yuan," she said.

    "Both companies made major strides in natural gas production last year, indicating their efforts to achieve lower emissions via green transformation."

    By 2025, PetroChina plans to increase its proportion of natural gas production to 55 percent and CNOOC to 30 percent.

    Apart from fossil fuels, China's oil giants are also investing in green energy to help the country decarbonize and achieve carbon neutrality. PetroChina plans to invest in wind, solar, geothermal and hydrogen, while CNOOC will expand its offshore wind power business.

    With China setting a goal of being carbon neutral by 2060, Chinese oil companies are accelerating their strategic repositioning toward low-carbon business, said Tang Sisi, an analyst at research firm BloombergNEF. Renewable energy is a common theme, but the focus announced by Sinopec, CNPC and CNOOC varies. Offshore driller CNOOC plans to invest more in offshore wind, while Sinopec is focusing on solar and hydrogen production, she said.

    CNOOC Ltd said that its oil and gas reserves and production hit record highs in 2020, with proven reserves touching a record 5.37 billion barrels of oil equivalent and net oil and gas production reaching 528.2 million BOE, laying a solid foundation for future production growth.

    Its costs also dropped to a 10-year low, with all-in costs falling to $26.34 per BOE, down 11.6 percent year-on-year and operating cost to $6.90 per BOE, down 6.7 percent year-on-year, further consolidating the cost competitiveness of the company.

    PetroChina said the company will seize the opportunities for low-carbon transformation and development in the energy sector, actively lay out a low-carbon business model to foster clean production, endeavor to achieve "carbon emissions peak" by around 2025 and "near-zero" emissions by around 2050, thus achieving the global objective of "carbon emissions peak" and "carbon neutrality".

    Sinopec plans to increase capital spending by 23.8 percent to 167.2 billion yuan this year following a recovery in oil prices and energy demand as the COVID-19 pandemic has been brought under control. The company's crude oil throughput last year fell 4.7 percent from a year earlier to 236.91 million tons, with gasoline and diesel output down 7.7 percent and 4.3 percent, respectively, while kerosene production plunged 34.6 percent. Its crude oil production was 280.22 million barrels in 2020, down 1.4 percent year-on-year, while natural gas output was 30.3 billion cubic meters, up 2.3 percent from 2019.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    91天日语中文字幕在线观看| 麻豆国产精品无码视频| 69天堂人成无码麻豆免费视频| 69久久精品无码一区二区| 精品少妇人妻av无码久久| 波多野结衣中文在线播放| 无码精品日韩中文字幕| 丰满熟妇人妻Av无码区| 我的小后妈中文翻译 | 日韩中文字幕在线| 无码中文av有码中文a| 日韩精品人妻系列无码专区| 免费无码午夜福利片69| 午夜无码一区二区三区在线观看| av潮喷大喷水系列无码| 中文字幕永久一区二区三区在线观看 | 中文字幕av无码专区第一页| 亚洲AV无码AV男人的天堂| 久久激情亚洲精品无码?V| 精品久久久中文字幕人妻| 狠狠躁狠狠爱免费视频无码| 特级做A爰片毛片免费看无码| 狠狠躁天天躁中文字幕无码 | 日韩精品人妻系列无码专区| 好看的中文字幕二区高清在线观看| 久久久无码精品亚洲日韩蜜臀浪潮 | 青春草无码精品视频在线观| 色婷婷综合久久久久中文一区二区| 无码人妻熟妇AV又粗又大| 区三区激情福利综合中文字幕在线一区 | 久久伊人中文无码| www.中文字幕| 中文字幕你懂得| 精品无码一区在线观看| 无码人妻精品一区二区三区蜜桃 | 中文字幕日韩一区| 最近2019中文字幕大全第二页| 亚洲精品一级无码鲁丝片| 国产精品免费无遮挡无码永久视频| 亚洲乱码中文字幕手机在线| 中文无码喷潮在线播放|