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The year 2020 was an extremely unusual and challenging time. Due to the outbreak of COVID-19 pandemic, various risks and conflicts were aggravated and intertwined, such as the deep economic recession, plummeted oil prices, sharp shrinking of oil and gas demand, intensified geopolitical instabilities and COVID-19’s adverse impact on overseas market. All these made unprecedented impact on the company’s business operations. PetroChina endeavored to seek opportunities and countermeasures amid all of these challenges, and make effective performance in epidemic prevention and control, production resumption, business operations, reform and innovation and other aspects. With such efforts, the Company achieved unusual operating results in an unusual year. Our better-than-expected operating results were a satisfactory accomplishment and a step forward on the way to building a top-class international energy company.

We maintained a stronger transformation momentum by implementing the green low-carbon strategy. Grasping the opportunities arising out of the low-carbon transition in the energy industry, PetroChina established a leading group with regard to new energy and new material business development. We strive to build a “Low-Carbon Energy Ecosystem” fully integrating fossil energy and clean energy, through measures such as planning eco-friendly industries, exploring new low-carbon business models, enhancing resource and energy efficiency, and promoting the green and clean replacement of our own energy consumption. We aim for achieving carbon emissions peak around 2025 and carbon neutrality around 2050, thus contributing to China’s efforts to have CO2 emissions peak before 2030 and carbon neutrality before 2060, as well as to the global climate target. In 2020, PetroChina produced 4221 billion cubic feet of marketable natural gas, up 8% year-on-year, of which domestic output accounted for 3993.8 billion cubic feet, an increase of 9.9% year-on-year. Such growth represented major progress in the Company’s green and low-carbon transformation. Adhering to the concept of “Clean Waters and Lush Mountains are Invaluable Assets”, we intensified efforts in pollution control, ecological protection and restoration, and emission reduction, and promoted the modernization of our ecological environment management systems and capabilities. The Company set energy-saving and emission-reduction as a major binding target and improved the oil-gas commodity rate and energy utilization efficiency. In 2020, PetroChina reduced its carbon dioxide intensity and emissions of COD, ammonia-nitrogen, sulfur dioxide and nitrogen oxides by 6.32%, 17%, 29%, 28% and 37%, respectively, as compared with 2015. We continued our deep involvement in cooperation projects under the OGCI framework. PetroChina pledged that its carbon emission reduction actions will not be affected by COVID-19 and low oil prices. This represents PetroChina’s determination to transform and its unshakable commitment to contribute to global carbon reduction.

We further consolidated the foundation for sustainable development by comprehensively promoting the modernization of our governance system and capabilities. Optimizing the governance system and enhancing governance capabilities is fundamental for PetroChina to cope with risks and challenges, realize scientific decision-making and safeguard stakeholder interests. Innovation in technology, management and the business model is the ultimate path to address global energy challenges and realize the energy revolution. We pushed forward reforms in systems, supervision, strategy, management and organization, as well as the marketization mechanism and innovation mechanism throughout the Company and accelerated the pace in establishing a governance system that fits our goal of building a top-class international energy company. In 2020, we achieved new progress and breakthroughs in enhancing our innovation capabilities and core competitiveness, as we took innovation as our top priority and critical step, and encouraged the building of an open ecological environment for innovation. We participated in the “4Mt/a coal indirect liquefaction technology innovation, development and industrialization” project, which won the first prize of the National Science and Technology Progress Award. Our other two R&D projects, the “Key technology for efficient development of coalbed methane reserves with complicated geological conditions and its application” and “Packaged technology for catalytic cracked gasoline super-depth hydrodesulfurization-alkene phased controlled transformation”, won second prizes of the National Science and Technology Progress Award. We successfully participated in investment in PipeChina and completed the restructuring and transfer of pipeline assets. We took a stake in the Richfit Digital-Intelligence Technology Co.,Ltd, in the context of accelerating our digitalized and intelligentized enabling transformation, in order to facilitate cost reductions and efficiency improvements, coordinated sharing, constant innovation, risk prediction and control, and smart decision-making throughout the Company.

We took coordinated measures to fight the COVID-19 epidemic, made due contributions to poverty alleviation and fulfilled our commitment to equitable and inclusive development. Facing the unexpected COVID-19 outbreak, PetroChina set up an executive group in a timely manner to arrange tailored and detailed epidemic prevention and control countermeasures on an enduring basis, in coordination with local governments, our employees, partners, communities and clients. We gave top priority to the safety and health of our employees, organized a strong network to fight the epidemic, and intensified psychological counseling and humanistic care. By the end of 2020, no epidemic or infection case was reported in our workplaces.

Leveraging its industrial and resource advantages, the Company went all out to secure refined products and gas supplies and made urgent arrangements to produce anti-epidemic supplies. We donated funds and goods to severely affected regions and supplied daily necessities to communities through our service station network. PetroChina’s service station at Hongtu Avenue in Wuhan was the only hero gas station in the country that won the title “National Leading Unit in Fighting Covid-19 Epidemic”. Overseas, we established joint anti-epidemic mechanisms with local governments and communities and donated anti-epidemic materials to assist neighborhoods in their anti-epidemic efforts. PetroChina, leveraging its industrial, technical and human resources, always takes an active part in the national poverty alleviation campaign. During the “13th Five-Year Plan” period, we joined forces with our parent company to carry out targeted poverty-alleviation activities in 1,175 villages in China to support the government’s initiative. PetroChina paid taxes according to local laws, totaling RMB 23.8 billion overseas. Meanwhile, the Company continued to implement a series of projects to support local communities. As a result of its efforts in poverty alleviation and empowering women, PetroChina was honored with the “2020 Best Practice for Corporate Achieving the Sustainable Development Goals (Eradicating Poverty and Promoting Prosperity)” award by the UN Global Compact and was granted the “National Poverty Alleviation Organization Innovation Award” by the Chinese government.

In the year to come, given the complex and difficult situation, with accelerating energy transition and the profound adjustment of the energy supply-demand pattern, PetroChina will have to shoulder greater responsibilities and face more challenges as well as more opportunities. We will implement our strategies with respect to innovation, resources, markets, internationalization and green and low-carbon, towards the goal of building a top-class international energy company on a quality-based pathway. While focusing on core business, reform and innovation, quality and profitability, and corporate governance, we will also seize the opportunities for low-carbon transformation, accelerate the process of building up new advantages in green development and contribute to the UN Sustainable Development Goals 2030, creating and sharing a bright future with all of our stakeholders.

PetroChina is committed to green development and energy delivery, facilitating the growth momentum of customers and empowering people to enjoy a happy life!

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