Improving Energy Efficiency to Promote Sustainable Development
Mr. Wang Jiming, Vice Chairman of SINOPEC Corp.
(2005-11-20)
Honorable Dr. Felcht
Dear Friends, ladies and gentlemen:
It is my great honor to share the podium and exchange views on energy and development. I would like to
take this opportunity to make a presentation entitled “Improving energy efficiency to promote
sustainable development”.
1.
Improving Energy Efficiency to Promote Sustainable Development
Since the reform and opening-up, China’s economic development has kept a rapid growth while its
energy production and consumption has increased by 4.2% and 4.9% per year respectively. In 2004,
primary energy production such as coal and petroleum reached 1.845 bn tons of standard coal
equivalent, and the consumption hit 1.97 bn tons of standard coal equivalent. Self-sufficiency reached
94% and foreign dependence 6%. This indicated that China’s energy consumption mainly relied on
domestic supply. In the total energy consumption, the proportion of coal dropped from 76.2% in 1990 to
67.7% in 2004, petroleum rose from 16.6% to 22.7%, natural gas up from 2% to 2.6% and hydraulic
power, nuclear power, wind power and solar energy rose from 5.2% to 7%. With the optimization and
adjustment of energy structure, the growth of oil & gas consumption has increased. Therefore, Chinese
government has attached greater importance to the exploration and utilization of oil & gas resources,
giving priority to energy-saving, trying to cut oil & gas consumption, and calling for improvement in oil &
gas exploration, processing and efficiency.
SINOPEC is a leading energy producer and a major energy consumer. As the largest integrated energy
and petrochemical company in China, SINOPEC will always implement the policy of the State
government. It is our social responsibility to improve energy efficiency for sustainable development.
Therefore, SINOPEC is committed to establishing and implementing a scientific outlook on development,
giving respective play to development and energy-saving of which energy-saving is put as priority. First,
depending on technological progress, the Company actively implemented technical revamping and
structural adjustment so as to reduce energy consumption by big margin. Through massive technical
revamping, the Company has built 6 refinery sites with ten-million-ton capacity in Sinopec Zhenhai,
Maoming, Shanghai, Gaoqiao, Jinling and Qilu. In chemical segment, the Company has carried out such
revamping projects to improve product quality, variety, energy-saving and profitability. The Company has
completed the second round of technical revamping in 4 large ethylene plants, namely Sinopec Yanshan,
Shanghai, Yangzi and Qilu, to increase each ethylene capacity from 400 KTA to 700 KTA. The revamping
has also been completed in 3 medium ethylene plants, namely Sinopec Tianjin, Zhongyuan and
Guangzhou. Meanwhile, the Company has shut down and eliminated small-scale refineries, chemical
plants, oil depots, inefficient and backward oil & gas blocks and oil wells which caused high energy and
feedstock consumption, serious pollution and outstanding safety hazards. The processing capacity of
those shut-downs adds up to 16.2 MMT per year. Second, the Company leveraged the synergy of whole
business value chain so as to improve energy efficiency. Therefore, we actively optimized the energy
utilization structure, optimizing regional and intra-group resources, replacing oil feedstock with coal, coke
and natural gas, harnessing the synergy of abundant coal resource and refinery byproduct, leveraging
high sulfur coke as a new fertilizer feedstock, taking full advantage of high-sour petroleum coke,
replacing fuel boilers with CFB boilers, making the most of waste water, gas and solid and stepping up
product quality upgrading. Third, we constantly improved our internal management, implementing ERP
and HSE systems, enforcing strict rules for and improvement in energy-saving, water-saving and
environmental protection through performance assessment. Fourth, the Company sped up natural gas
production and utilization, improving energy supply structure, and striving to increase the proportion of
natural gas in the energy consumption mix in a short period.
2.
Strengthening the Cooperation to Achieve Common Progress
According to the goal of building a well-off society in an all-around way set forth by the 16th CPC National
Congress, the next 15 years will be a critical strategic period for the presence and development of
SINOPEC. During this period, China is still under rapid economic development, triggering rapid demand
growth for petroleum and petrochemical products, contributing great driving force and opportunity for
SINOPEC’s development, setting a higher standard to improve energy efficiency and sustainable
development. To this end, SINOPEC will put priority on energy saving, base itself on domestic market,
pursue development in all-around way and actively involve in international cooperation. We are making
greater efforts in oil & gas exploration and production, stepping up reforms, readjustment and technical
innovation, improving internal management and energy efficiency so as to build a resource-efficient
company. Meanwhile, we are actively promoting foreign cooperation inside and outside China. In recent
years, in addition to the downstream petrochemical JV cooperations, SINOPEC strengthened
international cooperation in oil & gas exploration and production with extensive progresses. The
Company successively signed cooperation agreements with its counterparts in Algeria, Azerbajian,
Yemen, Iran, Indonesia, Saudi Arabia, etc.
Looking ahead, in the field of better energy efficiency and sustainable development, we are going to
further expand the exchanges and cooperation with foreign companies, sci- tech communities and public
organizations, learning and absorbing advanced concepts and new technologies, introducing effective
management mechanism from multi-nationals, so as to constantly improve energy efficiency and
contribute to sustained and coordinated socio-economic development in China and the whole world.
Thank you!