China Petroleum & Chemical Corporation (Sinopec Corp.) Statistics: China Petroleum & Chemical Corporation also referred to as Sinopec Corp., has integrated upstream, midstream, and downstream operations, strong oil & petrochemical core businesses, and a complete marketing network. The company is listed company on domestic and international stock exchanges.
Reporting Segments:
The group operates through five reportable segments:
- Exploration and Production — engaged in exploration and development of oil fields, production of crude oil and natural gas, selling of products to the refining segment of the Group, and external customers.
- Refining — engaged in processing and purification of crude oil, which is sourced from the exploration and production segment of the group and external suppliers, and manufactures as well as sells petroleum-based products.
- Marketing and Distribution — owns and operates oil depots and service stations in the People’s Republic of China (PRC), and distributes and sells refined petroleum products through wholesale and retail sales networks.
- Chemicals — engaged in manufacturing and sales of petrochemical products, derivative petrochemical products, and other chemical products to external customers.
- Others — comprises trading activities of import and export companies of the Group and research and development undertaken by other subsidiaries.
Production & Operations Review 2020
Exploration and Production
- In 2020, the company was engaged in high-efficiency exploration and profit-oriented development.
- The company’s production of oil and gas reached 459.02 million barrels of oil equivalent, with domestic crude production registering 249.52 million barrels and natural gas production 1,072.3 billion cubic feet, up by 2.3% year on year.
Refining
- In 2020, the company processed 237 million tons of crude oil yielding 142 million tons of refined oil products, and 40.22 tonnes of light chemical feedstock, with a 1.1% year-on-year increase rate.
Marketing and Distribution
- The total sales volume of refined oil products for 2020 was 218 million tons, of which domestic sales volume accounted for 168 million tons. In addition, the company focuses on strengthening, developing, and marketing of self-owned brands to speed up the growth of the non-fuel business.
Chemicals
- The ratio of new and specialty products in synthetic resin reached 67.1%, up by 1.8%.
- Ethylene production in 2020 reached 12.06 million tonnes, and the ratio of high value-added products of synthetic fiber was 32.5%, up by 0.8% year on year.
Production & Operations Review 2019
Exploration and Production
- In 2019, the company announced a plan to produce 288 million barrels of crude oil, of which oversees production of natural gas was 1,019.1 billion cubic feet and 39 million barrels.
- Sinopec Corp. is focused on expanding the capacity of the Tahe Oilfield, through a technological breakthrough for undeveloped oil-bearing reservoirs, and for improving refined reservoir characterization of mature fields, with the objective to increase reserve development rate and recovery rate.
Refining
- In 2019, the company announced a plan to process 246 million tons of crude oil and produce 157 million tons of refined oil products.
Marketing and Distribution
- In 2019, the company plans to sell 182 million tons of refined oil products in the domestic market.
- The company announced a plan to explore the new business model of “Internet + service stations + convenience stores + comprehensive services” to advance the development and marketing of self-owned brands and to advance the growth of its nonfuel business.
Chemicals
- The company announced a plan to enhance the dynamic optimization of facilities and product chain, as well as to improve utilization and production schedule based on market demand.
- The company’s focus is on increasing cultivation and production capacity to produce high-end products and create more value. In 2019, the company plans to produce 12.12 million tons of ethylene.
Others
- In 2019, the company announced that it would be adopting various long-term strategies and pushing forward high-quality development in an all-around manner to achieve sound results.
Major Projects
- Tianjin LNG project: The first phase of the Tianjin LNG project, which was completed and put into operation at the end of January 2018, with a designed receiving capacity of 3 million tons per year was primarily for the construction of a wharf, terminal, and transportation pipelines.
- Hainan Refining and Chemical expansion project: This project consists of a 5,000,000 Total Petroleum Hydrocarbons (TPA) refinery project and a 1,000,000 TPA ethylene project, among which the second set of high-efficiency and environment-friendly aromatics project started in August 2017, and is expected to be put into operation in June 2019.
- Zhongke integrated refining and chemical project: This project mainly consists of a 10,000,000 TPA refinery project, 800,000 TPA ethylene unit, 300,000-ton capacity jetty, and relevant utilities project. The mechanical completion is expected to be achieved in June 2020.
- Zhenhai Refining & Chemical expansion project: This project consists of 15,000,000 TPA refinery projects and 1,200,000 TPA ethylene projects. The project was approved in June 2018, ethylene and relevant projects started at the end of October 2018, and are expected to be put into operation in 2021.
- E-An-Cang gas pipeline project: The first phase of the E-An-Cang gas pipeline project mainly consists of the main pipeline from Luquan to Cangzhou and two branch pipelines Puyang and Baoding. The total length of the pipeline is 736 kilometers, with a designed transmission capacity of 9 billion cubic meters per year. It is expected to be completed and put into operation in December 2019.
- Wen 23 gas storage project: The first phase of the Wen 23 gas storage project mainly consists of the construction of injection and production wells and surface facilities with a storage capacity of 8.431 billion cubic meters. The gas storage is expected to be officially put into operation in July 2020.
- Xinqi pipeline project: The main project of the first phase of the Xinqi pipeline project was the construction of the pipeline from Qianjiang to Shaoguan. The total length of the pipeline is 839.5 kilometers, with a designed transmission capacity of 6 billion cubic meters per year. It is expected to be completed and put into operation in July 2020.
- Wuhan ethylene debottlenecking project will expand the existing 800,000 tpa ethylene to 1,100,000 tpa ethylene. The project started at the end of October 2018 and the mechanical completion is expected to be achieved in December 2020. The Company’s self-owned fund accounts for 30% of the project investment, and a bank loan is the main source of the remaining. As of 30 June 2020, the aggregate investment was RMB 2.7 billion.
- Weirong shale gas project Under the guidance of “overall deployment, stage-wise implementation and full consideration”, the building of the first phase of production capacity, which is 1 billion cubic meters per year, was promoted comprehensively since August 2018. It is expected to be completed and put into operation in December 2020. The Company’s self-owned fund accounts for 30% of the project investment and a bank loan is the main source of the remaining. As of 30 June 2020, the aggregate investment was RMB 2.5 billion.
Subsidiaries
Oilfields: SINOPEC Zhongyuan Oilfield Company, SINOPEC Henan Oilfield Branch Company, SINOPEC Jianghan Oilfield Company, SINOPEC Jiangsu Oilfield Company, Sinopec Southwest Oil & Gas Company, SINOPEC Shanghai Offshore Petroleum Company, Sinopec Northwest Oil Field Company, SINOPEC Southwest Oil& Gas Company, SINOPEC East China Company, Sinopec North China E& P Company, SINOPEC Northeast Oil and Gas Company, SINOPEC Pipeline Storage & Transportation Company, SINOPEC Northeast Company, SINOPEC Gas Company, SINOPEC Exploration Southern Company, and SINOPEC Pipeline Transport & Storage Company.
Refineries & Petrochemicals: SINOPEC Beijing Yanshan Company, SINOPEC Qilu Company, SINOPEC Shanghai Gaoqiao Company, SINOPEC Jinling Company, SINOPEC Maoming Company, SINOPEC Tianjin Company, SINOPEC Baling Company, SINOPEC Changling Company, SINOPEC Zhenhai Refining & Chemical Company, SINOPEC Guangzhou Company, SINOPEC Anqing Company, SINOPEC Luoyang Company, SINOPEC Jingmen Company, SINOPEC Jiujiang Company, SINOPEC Hubei Chemical Fertilizer Company, SINOPEC Jinan Company, SINOPEC Wuhan Company, SINOPEC Zhongyuan Petrochemical Corp. Ltd., SINOPEC Qingdao Refining Corp. Ltd., SINOPEC Cangzhou Company, SINOPEC Lubricant Company, SINOPEC Beihai Company, SINOPEC Xi’an Company, SINOPEC Tahe Company, SINOPEC Catalyst Company, SINOPEC Hainan Petrochemical Co., Ltd., SINOPEC Qingdao Petrochemical Co. Ltd., SINOPEC Zhanjiang Dongxing Petrochemical Company Limited, SINOPEC Shijiazhuang Refining & Chemical Company, Sinopec Asphalt Sales Branch Company, Sinopec Shanghai Asphalt Sales Branch Company, Sinopec Shanghai Petrochemical Co., Ltd., Sinopec Yizheng Chemical Fibre Company Limited, Sinopec Yangzi Petrochemical Company Limited, Sinopec Chemical Commercial Holding Company Limited, Sinopec Zhongyuan Petrochemical Corp. Ltd., SINOPEC Catalyst Company, Profile of Fujian Petrochemical Company Limited, and Sinopec Nanjing Chemical Industrial Corporation.
Oil Products Sales: SINOPEC Beijing Oil Products Company, SINOPEC Tianjin Oil Products Company, SINOPEC Hebei Oil Products Company, SINOPEC Shanxi Oil Products Company, SINOPEC Shanghai Oil Products Company, SINOPEC Jiangsu Oil Products Company, SINOPEC Zhejiang Oil Products Company, SINOPEC Anhui Oil Products Company, SINOPEC Fujian Oil Products Company, SINOPEC Jiangxi Oil Products Company, SINOPEC Shandong Oil Products Company, SINOPEC Henan Oil Products Company, SINOPEC Hubei Oil Products Company, SINOPEC Hunan Oil Products Company, SINOPEC Guangdong Oil Products Company, SINOPEC Guangxi Oil Products Company, SINOPEC Hainan Oil Products Company, SINOPEC Guizhou Oil Products Company, SINOPEC Yunnan Oil Products Company, Sinopec Sichuan Petroleum Company, Sinopec Liaoning Oil Products Company, Sinopec Chongqing Petroleum Company, Sinopec Shaanxi oil products Company, SINOPEC Inner Mongolian Oil Products Company, SINOPEC Xinjiang Oil Products Company, SINOPEC Jilin Oil Products Company, Sinopec Heilongjiang Oil Products Company, Sinopec Qinghai Oil Products Company, Sinopec Gansu oil products company, SINOPEC Ningxia Oil Products Company, Sinopec (Hong Kong) Limited, SINOPEC Fuel Oil Sales Corporation Limited, and Sinopec Chemical Sales Company.
Wholly-owned & Controlling Subsidiaries: SINOPEC Shanghai Petrochemical Co., Ltd., Sinopec (Hong Kong) Limited, SINOPEC Yangzi Petrochemical Co., Ltd., Sinopec Yizheng Chemical Fibre Company Limited, Fujian Petrochemical Company Ltd., China International United Petroleum & Chemicals Co., Ltd., Sinopec Marketing Co., Ltd., China Petrochemical Technology Company, Ltd., China Petrochemical International Co., Ltd. (SINOPEC Intl Co., Ltd.), and SINOPEC Fuel Oil Sales Corporation Limited.
Research Institutions: SINOPEC Exploration & Production Research Institute, SINOPEC Research Institute of Petroleum Processing, SINOPEC Beijing Research Institute of Chemical Industry, SINOPEC Fushun Research Institute of Petroleum and Petrochemicals, SINOPEC Shanghai Research Institute of Petrochemical Technology, SINOPEC Qingdao Safety Engineering Institute, SINOPEC Research Institute of Petroleum Engineering, and Sinopec Geophysical Research Institute.
Others: SINOPEC Fujian Refining & Chemical Co., Ltd., Sinopec SenMei (Fujian) Petroleum Company Limited, Shanghai Secco Petrochemical Co., Ltd., Petro-CyberWorks Information Technology Co., Ltd., and BASF-YPC Company Limited.
Financial Highlight:
- Sinopec is the second-largest Chinese national oil company after PetroChina (CNPC).
- The company’s overall operating income decreased from US$ 423,556 Million in 2019 to US$ 301,373 Million in 2020, which was a decline of 40.5%.
- The company’s overall operating profit decreased from US$ 12,898.4 Million in 2019 to US$ 7,778.32 Million in 2020, which was an incline of 65.8%.
Key Development:
The year 2020
- In January, the company announced its plans to build new LNG terminals in China’s Shandong province.
- In April, China Petroleum announced its plans to acquire a stake in Hin Leong’s Singapore terminal.
- In July, PipeChina agreed to acquire major pipeline assets from PetroChina for yuan268.7 billion.
- In September, Sinopec acquired ten liquefied natural gas cargoes.
- In June, the company installed a slurry-bed residue hydrogenation reactor of 3,000 tonnages in Zhoushan, China.
The year 2019
- In October, the company and SIBUR Holding entered into a joint venture agreement to produce nitrile butadiene rubber in Krasnoyarsk, Russia, and Shanghai, China.
- In November, the company signed an MoU with Air Liquide to accelerate the deployment of hydrogen mobility solutions in China.
- In November, the company signed an agreement with PT Perusahaan Gas Negara, a unit of Pertamina, to supply LNG to Sinopec in 2020.
- In December, the company and LyondellBasell Industries entered into a memorandum of understanding to form a joint venture.
- In June, the company signed a framework agreement with Sibur Holding for Amur Gas Chemical Complex in Moscow, Russia.
- In November, the company announced its plans to build a fleet of 100 barges in the next three years to supply marine fuel.
- In June, Sinopec, Novatek, and Gazprombank signed a contract to form a joint venture to market LNG and natural gas to end customers in the People’s Republic of China.
- In June, Sinopec and SIBUR Holding signed a term sheet for a joint venture to maximize the efficiency of their large-scale projects.
The year 2018
- In March, Unipec, the trading arm of Sinopec, signed a deal with to buy Middle East crude.
- In July, Sinopec signed a joint development agreement with Alaska Gasline Development, China Investment, and Bank of China to develop the Alaska LNG Project worth US$43 billion.
- In February, the company signed a cooperation and marketing agreement with Hengli Petrochemical.
- In August, China Petroleum & Chemical announced its plans to construct 55.6 Bcm natural gas storage in northern China.
- Corporate Changes/Expansions; In August, the company started a crude oil tank farm in Yizheng, China.
- In September, the company announced its plans to construct an oil refinery in Alberta, Canada.
- In October, the company and BASF signed an MOU to develop a steam cracker in China.
- Corporate Changes/Expansions; In December, the company opened its new overseas fuelling station in Singapore.
- In January, the company signed a contract worth Abadan refinery expansion deal to develop Iran’s oldest crude processing facility in the southern oil-rich Khuzestan Province.
- In January, Sinopec entered into an agreement to acquire a 75% stake in Chevron South Africa.
The year 2017
- In August, The company signed a joint operating agreement with China to relaunch the inspection and build up activity in the area.
- In May, PT Pertamina selected Sinopec for crude oil processing from Iraq.
- In May, Saudi Arabian Oil signed an agreement to establish a refinery and petrochemical facility in China.
- In July, Petro Matad signed a comprehensive drilling contract with Sinopec to identify drilling targets.
- In July, the company entered into an agreement valued at US$1.3 billion with Iran.
- In July, the company invested US$5.1 billion in a gas pipeline project for the new economic zone.
- In August, Sinopec secured a contract with DuPont for a STRATCO alkylation unit in providing China Petroleum & Chemical Corporation.
- Sinopec completed the upgrading of oil products at its oil depots and 562 service stations in Beijing to meet new emission standards.
- Sinopec and SABIC sign a strategic cooperation agreement. According to the agreement, Sinopec and SABIC will study opportunities for joint projects in China and Saudi Arabia, to boost China’s Belt and Road Initiative and “Saudi Vision 2030” plan.
- Sinopec signed a sales and purchase agreement with Chevron Global Energy to acquire its 75% stake in Chevron South Africa (Proprietary) Ltd and its 100% holding in Chevron Botswana for about $900 million.
- Sinopec (Hong Kong) Limited, a subsidiary of Sinopec, acquired a petrol station site at Yishun Avenue in Singapore.
- Gaoqiao Petrochemical (a subsidiary of Sinopec), BP Chemicals, and Sinopec entered into an acquisition agreement, pursuant to which Gaoqiao Petrochemical agreed to purchase a 50% stake in Shanghai SECCO Petrochemical Company Limited (SECCO) from BP Chemicals.
- In March, the company and SABIC sign a strategic cooperation agreement to study opportunities for joint projects in China and Saudi Arabia.
- In May, the company along with EPEC, and Air Products entered into an agreement to propel e-commerce business development on the EPEC.com portal.
The year 2016
- Brazil Route2 gas pipeline, in which Sinopec had a stake, has been put into operation with a length of 401 kilometers and a transportation capacity of 13 million cubic meters per day.
- Sinopec Sales Company signed a cooperation agreement with Yanchang Petroleum (Group) Co. Ltd.
- The Kazakhstan subsidiary of Sinopec Service Zhongyuan has signed contracts worth $245 million.
- Sinopec’s diesel hydrogenation technology received the bidding of the PMB project of Hengyi Industries Sdn Bhd, Brunei.
- Sinopec Geophysical Corporation acquired the TOUAL 3D seismic project of approximately 3,753 square kilometers in Algeria.
- Fujian Gulei Petrochemical was unveiled in Xiamen which is a 50:50 joint venture established by Fujian Petrochemical Company Limited (FPCL) and Taiwan Xuteng Investment Company Limited for the construction of an integrated petrochemical complex at Gulei Petrochemical Base (ZGPB), in Fujian Province, China.
- Apache and Sinopec won the bidding for Block 6 and Block 7 in Egypt’s the Western Desert. The license covers an area of 6355.5 square kilometers.
