The continuous growth and development of China,s economy leads to an increasing demand for petroleum and petrochemical products. This offers PetroChina great potential for growth while it also increases the Company,s responsibilities and pressure to secure steady supply. Adhering to the guideline of “understanding the whole picture, stabilizing supply, ensuring good quality and providing consistent services” , PetroChina has strived to ensure supply and contribute to both social and economic growth.
Supply of Oil Products
We has rigorously observed the policies on price, quantity and quality issued by central and local government authorities in order to create a fair and quality market environment for consumers, while taking measures to ensure market supply.
Supply of Natural Gas
We urged for the construction of a structural gas network and underground gas storages while accelerating the exploration of new gas fields. In 2007, the Lanzhou-Yinchuan Gas Pipeline was put into operation and four major gas areas (Tarim, Southeast, Changqing and Qinghai ) were connected to the structural gas network, improving the safety of supply from diversified sources. Seven underground gas storages were put into operation in Northern China and Jiangsu province, while 1.48 billion m3 gas was accumulated during low-consumption seasons, helping to consolidate the ability to meet peak-season demand. Natural gas supply to the major cities and users were guaranteed by taking the advantages of pipeline networks and the coordinating of production, transmission, marketing and storage.
Refining and Chemicals
We improved production control management systems, enhanced equipment management and quality of maintenance and repair, and further upgraded equipments. In 2007,seven key projects, including Huabei Petrochemical Company's 5-million tons/year refining reconstruction, Liaoyang Petrochemical Company's 200,000 tons/year ethylene reconstruction and a 800,000 tons/year PTA reconstruction, were completed and put into operation. Dagang Petrochemical Company's 5-million tons/year auxiliary refining project and Urumqi Petrochemical Company's 1-million tons/year hydrocracking project will be soon completed. The construction of four 10-million-ton technical innovation and new projects in Dalian, Dushanzi, Fushun and Guangxi as well as four major ethylene projects in Dushanzi, Sichuan, Daqing and Fushun are undergoing smoothly.
Pipeline Operation
Crude oil, natural gas and refining bases are mainly located in China's western and northern regions. However, the consumption is most predominant in coastal areas. The construction of pipeline networks connecting the supply bases and the market has been one of the key strategic moves of the Company to ensure supply.
By the end of 2007, crude oil, natural gas and oil product pipelines operated by us totaled 10,559 km, 22,043km and 2,669 km respectively. Moreover, the Beijing Oil & Gas Pipeline Control Centre, operated by PetroChina, was completed and started operations. It performed centralized control over 28 on-service long-distance oil/gas pipelines (running across 22,000 km in total) in China. As a result, the centralized distribution capacity of oil and gas has been significantly improved.
International Trade
PetroChina has been increasing its efforts in exploring oil fields and serving to enhance international trade. The company's actions including expansion to new regions, diversification of trading models, improvements in trading channels as well as competitiveness in global markets is steadily enhanced. To meet demand in the domestic market, PetroChina managed the import of crude oil and trading of oil products through existing railways, pipelines as well as seaways,which sustained the operation of domestic refineries and chemical enterprises while stabilizing the supply-demand cycle in the domestic resources market.
Quality Improvement
Guided by the concept of “quality first, quality competition” , We has adopted general international quality management standards and world-leading production standards and technology requirements, for the control of production processes and field quality. The Company has employed a random inspection system and applied a quality certification and verification system for key goods and materials purchased. Additionally, PetroChina has consolidated the quality management of key engineering projects and established a project leader and legal accountability systems to ensure life-long accountability for project quality. We has also adopted an on-site supervision system in factory for critical products, major equipments and bulk materials used for key projects, ultimately greatly improving product and service quality. |