Marketing and Sales

CNPC’s marketing activities are mainly focused on crude oil and petroleum products, basic petrochemicals, derivative chemicals and other chemicals.

Taking advantage of a well-organized marketing network for refined products and a centralized marketing system for chemicals, CNPC has established an enhanced and efficiently operated marketing network nationwide with retail outlets and service stations set up across the country to providing services to more than 11 million customers on a daily basis.

Given the diversity of competitors and supply channels and inspired by the business philosophy of “Premium Service for Customers”, we are committed to providing quality products and premium services to our customers through a conversion of growth model for CNPC’s marketing subsidiaries.

Refined Products

CNPC’s refined products sales volume and market share have been increasing steadily in recent years. In 2022, domestic sales of refined products reached 104.23 million tons.

By strengthening technological innovation and optimizing the product mix, we provide safe, reliable, high-quality and environmentally friendly products for our customers.

In 2022, we further increased the proportion of high-end, high-performance products, continuously promoted the new material production acceleration project, and took the initiative in scientific research, planning and layout, production capacity building, and joint venture cooperation, etc. We produced 855,000 tons of new materials, an increase of 56.3%. The output of our 119new chemical products reached 840,000 tons, with an increase of 126% year-on-year. The total output of chemical products increased by 2.1% year-on-year, while the output of lucrative products such as synthetic resin and synthetic fiber increased by 6.6% and 47.5% respectively.

Marketing Network

With an aim to become a top service provider of oil, gas, hydrogen, electricity and non-fuel products at home and abroad, the Company continues to optimize its investment portfolio and business priorities in line with demand changes of vehicle fuel. The marketing operations saw transformation and upgrading by providing new services of hydrogen fueling, photovoltaics and charging. In 2022, a total of 177 service stations were built. Of them, 204 new service stations, 23 hydrogen refueling stations (integrated energy service stations) were completed and 280 battery swap station became operational. As of the end of 2022, the Company had a total of 22,655 service stations in operation across the country.

With more extensive and improved functions, the stations provide diversified services to satisfy customers’ needs. Convenience stores are available at 95% of these stations. As Internet big data and cloud computing technologies evolve rapidly, we are pushing ahead with the Service Station 3.0 initiative which is aimed at creating the “People + Car + Lifestyle” ecosystem based on the concept of “Service station + Internet + N”.

Contactless and fast services were available at our more than 20,000 service stations in the form of smart refueling and self-service convenience stores.

As the marketing structure has continuously improved, our brand value and market recognition have also grown. According to the report of the 2021 China Brand Power Index^SM (C-BPI) released by the renowned brand rating and consulting company Chnbrand, CNPC ranked first among China’s fuel retailers for the fifth consecutive year. The customer satisfaction rate as shown from follow-up calls of the CNPC service hotline 956100 has reached 97.8%.

Non-fuel Service

In CNPC, the synergy of the integrated marketing model comprising retail, fuel cards and non-fuel business has emerged. In 2008, we launched the uSmile brand for the integrated operation and management of our convenience shops. Using the smile design shows our service philosophy and quality in the sales business.

Non-fuel products are an important profit growth point in our marketing business. Taking advantage of the retail network, we realize integrated marketing at service stations by upgrading our convenience stores and the careful selection of commodities. We push forward the development of our self-produced commodities and, in particular, strengthen the promotion of the Kunlun Star commodity family. Vehicle services are offered at service stations, either by ourselves or our JVs, or by renters. Overall profitability has been improved by utilizing the resources of non-fuel suppliers through joint marketing and brand integration.

The brand value of our non-fuel brand uSmile reached RMB 12.632 billion, ranking second on the list of China’s retail brands, according to the 2020 China Brand Evaluation Press Conference co-hosted by the China Council for the Promotion of International Trade, China Brand Building Promotion Association, and China Appraisal Association.

International Trade

Supported by our three overseas operation hubs in Singapore, London and New York and distribution networks, we conduct trading in crude oil, refined products, natural gas, and petrochemicals, as well as international carbon trading, sales of our overseas equity oil, and transactions in oil and refined products futures in over 80 countries around the world. PetroChina International Co., LTD, a subsidiary of CNPC, is responsible for CNPC’s international trading activities.

PetroChina International deals with international trade in crude oil and about 100 kinds of refined and chemical products to and from over 80 countries and regions by way of commission agency, self-support import/export, transit and consigned processing for export. During its operations, PetroChina International has successfully carried out international transit business in crude, gasoline and fuel oil, as well as other businesses such as imported materials processing, oil products exchange, insurance agency and hedging services. Overseas wholesale of refined oil is carried out by means of tank rental and blending. PetroChina International also trades gasoline in Platts Assessment Window and actively makes overseas investments by acquiring and merging oil depots and filling stations. In 2022, we posted a trade volume of 430 million tons and sales revenue of USD 323.9 billion.

Development and Application of New Materials

In 2021, the Company boosted its new materials business based on its 14th Five-Year Plan for New Materials Business Development, focusing on 26 new materials in seven categories, in order to form signature products with a competitive edge. In December, PetroChina Shanghai New Materials Research Institute was established to provide strong support for the development of new materials business.

In 2022, the Company continued to increase its efforts in the planning, R&D and capacity ramp-up for new materials. The full-year production of new materials was 855,000 tons, with a year- on-year increase of 56.3%. Medical-grade polyolefin, solution styrene-butadiene rubber (SSBR) and cathode coke etc. were ready for commercial production, marking significant progress in the new materials business. Fast-paced construction of new materials bases. A 1.2 Mt/a ethylene plant and its supporting works started construction at Jilin Petrochemical as part of the transformation and upgrading process to increase the production of high-value chemical products and new materials such as ABS and ethylene-propylene rubber. The construction of an integrated refining-petrochemical complex kicked off at Guangxi Petrochemical to facilitate the upgrading of the Company’s SSBR products.