China Petroleum Enterprise Association releases the top ten news of China's petroleum and petrochemical industry for 2024

On December 30, 2024, the "Top Ten News of China's Petroleum and Petrochemical Industry in 2024", organized by the China Petroleum Enterprise Association and evaluated by experts from both inside and outside the industry, was officially released to the public. This is the 12th time that the China Petroleum Enterprise Association has organized the selection and released the "Top Ten News of China's Petroleum and Petrochemical Industry" to the public. namely:

1. New Energy Security Strategy Guiding the Petroleum and Petrochemical Industry to Achieve New Development

Over the past decade, the petroleum and petrochemical industry has implemented a series of pioneering measures and promoted a series of transformative practices. Highlight safety and efficiency, comprehensively enhance the supply capacity of diversified energy resources; Highlighting energy conservation and consumption reduction, vigorously promoting green and low-carbon development; Highlighting self-reliance and strengthening technological breakthroughs in the fields of energy and chemical engineering; Highlighting the stimulation of vitality and comprehensively deepening reforms in key areas; Highlighting mutual benefit and win-win outcomes, actively and prudently carrying out international energy cooperation. Effectively fulfilling the significant responsibility of safeguarding national energy security and maintaining the stability of the oil and gas industry supply chain.

2. The Energy Law provides action guidelines for the transformation and development of the petroleum and petrochemical industry

On November 8, 2024, the 12th Meeting of the Standing Committee of the 14th National People's Congress voted to adopt the Energy Law of the People's Republic of China (hereinafter referred to as the Energy Law), which will come into force on January 1, 2025.

The Energy Law is based on the actual endowment of energy resources in China, adapts to the new situation of energy development, and makes legal provisions on major fundamental issues in the energy field. It is a fundamental and overarching law in the energy field. It has released a "green" signal for the development of the petroleum and petrochemical industry, and also provided action guidelines for the industry's development.

3. The "Seven Year Action Plan" for increasing reserves and production in China's oil and gas industry has achieved significant results

The "Seven Year Action Plan" for increasing reserves and production in China's oil and gas industry is entering its final year.

In 2024, China's oil and gas industry will continue to increase upstream capital investment, and a number of large-scale oil and gas fields with billions of tons and billions of cubic meters, such as the Kaipingnan Oilfield, will be newly discovered. A number of oil and gas production areas have been established and put into operation, including China's first million ton oil and gas equivalent coal rock gas field - PetroChina Daji Gas Field, another billion cubic meter marine gas field in the Sichuan Basin - Sinopec Chuanxi Gas Field, China's first deep buried hill reservoir development project in the South China Sea - CNOOC Huizhou 26-6 Oilfield, China's first offshore multi-layer heavy oil thermal recovery oilfield - CNOOC Jinzhou 23-2 Oilfield, and China's first deep-water high-pressure gas field - "Deep Sea No.1" Phase II. The high-quality development of the oil and gas industry has reached a new level. At the same time, China's first national level terrestrial shale oil demonstration zone, Jimsar National level Continental Shale Oil Demonstration Zone in Xinjiang, achieved a historic leap in shale oil development in unconventional oil and gas by 2024 with a cumulative production of over 1 million tons. China's largest oil and gas field in terms of annual production, the Changqing Oilfield of PetroChina, has historically produced over 1 billion tons of oil and gas equivalent.

4. Anchoring the 'dual carbon' target in the petroleum and petrochemical industry to accelerate low-carbon transformation

The petroleum and petrochemical industry strengthens top-level design, accelerates research and determination of "dual carbon" development goals, implementation paths, and action plans. In March 2024, China Petroleum, Sinopec, and CNOOC successively held the first meeting of the Carbon Peak and Carbon Neutrality Working Group, anchoring the "dual carbon" goal and promoting the high-quality development of new energy businesses such as wind, solar, geothermal, and hydrogen energy in stages and steps.

On April 11th, Sinopec successfully explored the Beijing Shanghai hydrogen energy transportation corridor, marking the initial formation of China's Beijing Shanghai hydrogen energy corridor; On July 24th, the Energy and Chemical Industry Chain Carbon Footprint Alliance, the first alliance in China's energy and chemical industry focused on carbon footprint, was established in Beijing, jointly initiated by eight companies including Sinopec, PetroChina, CNOOC, National Pipeline Network, National Energy Group, Sinochem, Wanhua Chemical, and Zhejiang Petrochemical. On August 16th, China National Offshore Oil Corporation (CNOOC) Gaolan Terminal put into operation with the construction of an offshore carbon dioxide recovery and utilization project, which can reduce an average of about 180000 tons of carbon dioxide emissions per year. On August 21st, the Central Enterprise Green Hydrogen Energy Production, Storage and Transportation Innovation Consortium, jointly led by Sinopec and State Energy Group, was officially launched; On August 25th, China Petroleum's first 10000 acre zero carbon ecological park was officially completed in Ma'anshan, Daqing Oilfield, and obtained the "Carbon Neutrality Certificate" from the Tianjin Emissions Exchange; On November 26th, the CCUS Innovation Consortium, a state-owned enterprise jointly led by China National Petroleum Corporation and China Huaneng, was officially launched. From achieving "gas over oil" 10 years ahead of schedule, accelerating the promotion of "hydrogen vehicles on the road", to fully launching carbon neutrality plans, petroleum state-owned enterprises have anchored their low-carbon transformation goals, and the future energy development blueprint closely related to 1.4 billion people has become increasingly clear.

5. The drilling depth of China's first 10000 meter scientific exploration well has exceeded 10000 meters

On March 4, 2024, China's first scientific exploration well with a designed depth of over 10000 meters, the Deep Tarim 1 well of PetroChina Tarim Oilfield, was drilled to a depth of over 10000 meters, becoming the second onshore well in the world and the first vertical depth well in Asia to exceed 10000 meters. This marks China's independent breakthrough in the bottleneck of 10000 meter level ultra deep well drilling technology, and its deep oil and gas drilling capabilities and supporting technologies have entered the international advanced level.

6. The largest petrochemical industry base in China has been fully established

On December 18, 2024, Sinopec Zhenhai Refining and Chemical Phase II Capacity Expansion and High end New Materials Project was fully mechanically completed, achieving synchronous delivery of digital factory and physical factory, creating multiple records in the domestic same volume project group construction, including the widest application of independent innovation, the highest degree of intelligence, and the best energy conservation and consumption reduction. At this point, the refining capacity of Zhenhai Petrochemical has been increased to 40 million tons, making the total refining capacity of its Zhejiang Ningbo Petrochemical Base exceed 50 million tons, becoming the largest, most advanced, and most competitive world-class petrochemical industry base in China.

7. China creates a new economic and efficient development model for deepwater oil fields

On September 19, 2024, China's first deepwater oilfield secondary development project, CNOOC Liuhua 11-1/4-1 Oilfield Secondary Development Project, was officially put into operation in the waters of the the Pearl River Mouth Basin. The project completed the first cylindrical FPSO (floating production, storage and unloading device) in Asia "Sea Anemone No. 1" and Asia's first deepwater jacket platform "Sea Base No. 2", marking China's success in creating a new model of "deepwater jacket platform+cylindrical FPSO" deepwater oilfield economic and efficient development.

8. China's newly added oil and gas pipeline mileage exceeds 4000 kilometers

In 2024, China's oil and gas pipeline infrastructure will accelerate construction, with over 4000 kilometers of new pipelines added throughout the year. At present, China's main oil and gas pipeline network is about 100000 kilometers, and the gas transmission capacity has increased from 223 billion cubic meters in 2020 to 329 billion cubic meters, an increase of 48%. The daily natural gas supply capacity of the "national network" exceeds 1 billion cubic meters. By 2025, China's natural gas "national network" that spans east and west, north and south, covers the whole country, and connects overseas will be more complete, initially forming four major oil and gas strategic channels in the northeast, northwest, southwest, and offshore areas. At the same time, a "five vertical and five horizontal" natural gas trunk pipeline network will be built to further enhance the ability to guarantee oil and gas supply.

9. The digital transformation and intelligent development of the oil and gas industry have taken new steps forward

In 2024, China's petroleum and petrochemical enterprises will accelerate their pace of digital transformation and intelligent development. On October 14th, China National Offshore Oil Corporation's "Haiyeng" artificial intelligence model was officially released. On November 14th, Sinopec Zhenhai Refining and Ningbo Wanhua and other companies jointly released a large-scale model of petrochemical engineering. On November 28th, the 70 billion parameter Kunlun model jointly created by China National Petroleum Corporation, China Mobile, Huawei, and iFlytek was released. On November 29th, the "Pipeline Network" large model of the National Pipeline Network Group was officially launched and applied. Among them, Kunlun Big Model is the first large-scale model in China's energy and chemical industry to be registered. Its professional capabilities in natural language processing, speech visual recognition, multimodal interaction, scientific computing, etc. have been greatly improved. The training data for visual big models has been further enriched, and China's first exploration full field professional big model and 21 scene big models have been constructed.

On October 30th, the second phase of China's first offshore oil and gas equipment manufacturing "smart factory" project was put into operation, marking a new step in strengthening, supplementing, and extending the chain of China's first offshore oil and gas equipment manufacturing "smart factory". On December 3rd, the key technology research and industrial application of Sinopec's intelligent ethylene plant passed the acceptance inspection, marking the completion of the world's first digital twin intelligent ethylene plant in China.

10. More than 60 petroleum and chemical companies have been listed in the Top 500 Chinese Enterprises

On September 11, 2024, the China Enterprise Confederation and the China Entrepreneur Association released the 2024 China Top 500 Enterprises list, with over 60 petroleum and chemical companies listed. Among the companies listed in the petroleum and chemical industry, Sinopec and PetroChina ranked second and third respectively, with operating revenues of 3.041946 trillion yuan and 2.985411 trillion yuan, respectively. China National Chemical Corporation, China National Offshore Oil Corporation, Hengli Group, Zhejiang Rongsheng, Shaanxi Coal Industry, Shenghong Holdings, Zhejiang Hengyi, and Shaanxi Yanchang Petroleum have entered the top 100.