Chinese oil and gas majors taking differently paced steps towards decarbonisation
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Combustion Industry News Editor
Reuters has published an article outlining the carbon reductions plans of several major Chinese oil and gas companies, finding from its research that:
Petrochina, the largest oil and gas producer in Asia, is aiming for near-zero carbon emissions by 2050, through capital spending of US$1.5 billion per annum (€1.3 billion) – equivalent to 4% of its total 2020 spend – on a mix of gas-fired power generation, geothermal, wind, solar and hydrogen projects. Pilot projects on biofuels and geothermal power generation have already been conducted, while the company entered a joint venture hydrogen project in August.
Sinopec, the world’s largest oil refiner, is pursuing hydrogen the most keenly amongst Chinese companies, with a plan to build a number of “hydrogen highway corridors” along the east coast of the country, for the refuelling of hydrogen-powered automobiles. It last month made its first investment in a solar project, and is hoping to double its shale gas output to 13 billion cubic metres by 2025.
Offshore oil and gas specialist CNOOC has restarted offshore wind power generation activities (after ceasing them in 2014), and intends to spend 3-5% of its budget on them. It is also planning to raise its natural gas production so that it makes up 30% of its total oil and gas production, up from the current 19%.
In terms of decarbonisation, Petrochina’s plans appear the most ambitious, having declared a long-term goal; those of Sinopec and CNOOC could only be described as weak to moderate, though one gets the sense that the companies are testing the waters of emerging technologies to be ready to invest more heavily in the future.