PetroChina Petrochemical to expand energy imports

On May 14th, Wang Yilin, chairman of China National Petroleum Corporation (CNPC), proposed to establish a multilateral cooperation platform for energy and financial services in the "one way" approach. Wang Yilin, said in an interview with the media, PetroChina will sign a $ 20 billion contract to increase imports, including the United States, including more crude oil and natural gas. And the China Petroleum and Chemical Corporation Foreign Cooperation Office Director Dai Liqi in accept CNBC cable television news agency interview, said the company is expected to increase the scale of overseas investment to more than 30 billion US dollars.

Long-day petrochemical network analyst Wang Hao Hao said that in August 2015 the first domestic imports from the United States LNG, since January this year, from the United States have imported LNG ships from China in the United States, but the current imports are LNG "If the Chinese and US governments have reached an agreement, then the import of natural gas will inevitably accelerate."

The United States is the world leader in shale gas development. After 2006, the United States shale gas development breakthrough, shale gas production increased rapidly. 2016 US shale gas production over 400 billion cubic meters.

At present, the Chinese government is planning to further increase domestic sales of natural gas, so if you can sign the agreement will allow Chinese consumers have more choice.

An Xun Si Research Director Li Li said, "all the way to the" PetroChina, Sinopec greater investment opportunities, so before Saudi Arabia has been involved in the investment in China, the successful integration of refining experience, be the old friend of the downstream cooperation, " With this international cooperation peak, PetroChina and Sinopec will have greater investment opportunities.

Expand US energy imports

According to Wang Haohao, China's LNG import countries are mainly Indonesia, Qatar, Australia and Malaysia and Papua New Guinea. If the United States becomes a long-term importer of LNG natural gas in China, it will be more conducive to increasing the diversification of domestic LNG sources and safeguarding national energy security The

In recent years, US domestic companies have actively lobbyed Congress to export LNG to non-FTA countries. In particular, after the administration of the Trump government, the United States has paid more attention to LNG exports, and the government has made it clear that it will simplify the regulatory approval of new export projects, which will be more conducive to the United States to increase its exports of LNG.

Wang Yilin during an interview with the media pointed out that the US oil and gas resources are rich, China hopes to expand imports of energy from the country, so that China's energy supply more diversified.

China's crude oil production in April fell 3.7 percent to 15.99 million tons, the highest since September 2016, so the oil and so eager to increase the scale of overseas investment.

In addition to increasing imports of US energy, PetroChina has also initially established China Unicom's oil and gas supply and market network. Prior to the oil group deputy general manager Wang Dongjin said that China Petroleum actively promote infrastructure construction, from northwest, northeast, southwest and east gradually built in Central Asia, China and Russia, China and Myanmar and the sea and other four major oil and gas transport channel, initially formed Unicom Chinese and foreign, Through the multi-national oil and gas supply and market network.

Extending to the downstream area

Li Li said that in the current international oil prices low shock, the oil, Sinopec should be to the downstream areas and new energy extension, so more in line with the interests of enterprises.

At the end of March the oil released 2016 annual report, when the net profit of 7.857 billion yuan, the highest since the record record, down 77.9%. Industry analysis, said PetroChina upstream assets accounted for a larger, sensitive to oil prices, by the international oil prices and other factors have a greater impact, a sharp decline in performance. At that time, said the oil in 2016, the international oil prices hovering low, the oil field service industry has yet to get rid of the impact of low oil prices, the company production and management pressure to further increase.

Li Li believes that PetroChina and Sinopec in oil and petrochemical and other aspects of a very mature experience, so in the "one way", they can play a more role.

In 2012, Sinopec invested in an oil refinery project in Saudi Arabia - the Saudi Yanbu refinery project. It is Sinopec's first overseas refinery project, and China's largest investment project in Saudi Arabia, by the China Petrochemical and Saudi Aramco joint venture to build a total investment of nearly 10 billion US dollars. At the beginning of 2012, the two sides signed a joint venture agreement, Sinopec, Saudi Aramco held 37.5%, 62.5%.

"The Saudi government and Saudi Aramco are very satisfied with the construction and operation of this project, and with the investment and operation of the Port Arthur refinery, the Chinese oil companies must have a greater role." An oil central enterprises experts said.

Source: Reprinted from the National Oil and Chemical Network