What PetroChina, Sinopec and Cnocc do on climate and energy transition
China's goals on climate and the moves of the giants PetroChina, Sinopec and Cnocc according to the Center on Global Energy Policy, the energy think tank of Columbia University
On September 22, 2020, Chinese leader Xi Jinping made a surprise announcement about China's climate ambitions at the UN General Assembly. A little over a year ago he said that China, the world's largest emitter of greenhouse gases (GHG), would reach carbon neutrality before 2060. Not only that. Xi also said China's greenhouse gas emissions would peak before 2030, in a "slight" review of China's commitment under the Paris climate agreement to peak emissions around 2030. .
HOW PETROCHINE, SINOPEC AND CNOOC MOVE ABOUT CLIMATE
China 's new climate targets have prompted the country's three major national oil companies, China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec Group), and China National Offshore Oil Corporation (CNOOC), to strengthen their climate ambitions.
PetroChina (CNPC's flagship subsidiary), which had already set a goal of reaching near-zero emissions by 2050, said it intends to peak its carbon emissions by 2025.
Sinopec Corp. (the flagship subsidiary of the Sinopec Group) also aims to reach the peak of its carbon emissions by 2025 and carbon neutrality by 2050.
CNOOC Ltd. (the flagship subsidiary of CNOOC) plans to reduce its greenhouse gas emissions by 16% between 2020 and 2025 and aims to peak its CO2 emissions before 2030 and carbon neutrality before 2060 .
THE REPORT OF THE COLUMBIA UNIVERSITY CENTER ON GLOBAL ENERGY POLICY
According to a report from the Center on Global Energy Policy, the Columbia University energy think tank , Chinese state-owned energy companies (NOCs) are responding to climate change.
ENSURING OIL AND GAS SUPPLIES IN PRIMIS
In particular, the Chinese NOCs are balancing support for Beijing's decarbonization program with the energy security program. Securing oil and natural gas supplies for China, which imports over 70% of its crude oil and over 40% of its natural gas, is the number one job for companies. However, companies also need to demonstrate that they are developing credible plans to support China's carbon neutrality and peak carbon goals.
FROM 'OIL AND GAS' TO 'GAS AND OIL'
Chinese NOCs are shifting from "oil and gas" companies to "oil and gas" companies, highlights research from Columbia University: "Beijing's new climate targets are reinforcing a change that was already underway in the domestic production mixes of companies from oil to ga. This shift is driven by geology (production in China's largest and oldest oil fields is in decline) and politics (Beijing's push to increase the use of natural gas to improve air quality). China's new climate targets provide NOCs with another reason to increase exploration and production of natural gas. The gas can reduce China's greenhouse gas emissions if it is managed to replace coal and methane emissions. "
THE HORIZONS ARE WIDENING
Chinese NOCs Are Looking Beyond Oil and Natural Gas, Research Warns: While these fossil fuels will remain the core business for at least the next decade, companies recognize they may need to expand the scope of their operations to accommodate a world in the process of decarbonisation ”. For this "they are investing in energy and low carbon technologies where they have comparative advantages".
For example, Columbia university research continues, “CNOOC Ltd. is capitalizing on its decades of experience in offshore engineering to invest in China's fast-growing offshore wind industry. Sinopec Group seeks to leverage its network of over 30,000 retail stations to become a leading hydrogen fuel supplier across China. CNPC's plans are less clear, but the company signaled its intention to increase its participation in the energy transition when it merged its oil and natural gas and new energy divisions in April 2021 ”.
It is unlikely that NOCs will reinvent themselves too soon
In any case, the report points out, although "specific preparations for China's new peak and neutrality goals are still in the early stages it is unlikely that Chinese NOCs will reinvent themselves soon, NOCs are aware that they will have to continue developing their plans. for a smooth energy transition to show support for China's climate ambitions ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/cosa-fanno-petrochina-sinopec-e-cnocc-su-clima-e-transizione-energetica/ on Sun, 03 Oct 2021 06:22:38 +0000.