6766平台

Products
Marketing
and Service

Natural Gas

The business volume of natural gas for the whole year was 57.4 billion cubic meters, an increase of 11.8%, of which, sales of natural gas was 55.2 billion cubic meters, up by 14%, 7 percentage points higher than the national average increase, accounting for 16.8% of the domestic market share.

We actively coordinated upstream gas fields to ensure full production and sales of independently produced onshore gas resources, optimized long term LNG imports, and increased spot purchases. By the virtue of third party terminals, we introduced CNPC onshore natural gas and coal-bed methane from Shanxi to complement the demand and diversify the channels for resources. We completed 310 customers’ long term contracts and 329 third party pipeline transport agreements with customers and pipeline transport companies, and stabilized the market for existing stock. We seized the post-pandemic demand growth, raised the proportion of gas supply for customers through dual gas sources and combined supply of natural gas and LNG. We tried our best to entice new customers, and we developed 220 new customers along pipelines as Tianjin, Erdos-Anping-Cangzhou, Qingdao-Nanjing, and Qianjiang-Shaoguan. We opened up new channels such as “movement of gas from south to north, from east to west, from Sichuan to Guizhou, and from the sea to the south”, adding 13.5 million cubic meters of supply to the market every day. We adopted targeted marketing as “placing equal emphasis on natural gas and LNG”, “leveraging LNG through developing natural gas”, and “selling natural gas and delivering in LNG” in different localities, scaling up the sales of LNG. We leveraged the peak shaving advantages for Wen 96, Wen 23, and Jintan gas depots, rented Ganghua gas depot for its storage capacity, expanded the market of North China in winter and that of the Yangtze River Delta in summer, and coordinated Sinopec’s refining subsidiaries to enhance the supply of independently operated gas. Based on the platform of Great Wall Gas, we vigorously tapped into direct supply and end users, completed the delivery project of Binhai Investment Group’s equity investment, and accelerated our entry into the mature gas market.

Oil Products and Non-oil Products

The business volume of domestic oil products for 2020 reached 168 million tonnes, down by 8.9%, among which, the retail volume stood at 113 million tonnes, a decrease of 7.6%. The operating revenue of non fuel business grew by 5.6%.

Marketing and services of oil products. Under the strategy of “meticulous, targeted, and flexible marketing”, we pursued differentiated marketing in various localities. We established a dynamic supervision mechanism on work and production resumption, organized market inspections, and paid visits to our customers, basically stabilizing the scale of direct sales and distribution. We proceeded with the special activity of “cracking down on the illegal wrongdoings in production and operation” together with the government, and tried our best to level the playing field. We closely followed the opportunity of growing demand for LNG heavy trucks, strengthened the connection between marketing organizations and resources, and scaled up the sales of LNG terminals. We actively responded to the spinoff of refined oil pipeline network, resolutely kept operation despite low inventory, moved deeper in full-caliber logistics optimization, and strictly controlled the flow of resources with high freights.

Marketing and services of non-oil products. The brand Easy Joy was continuously nurtured, shaped, and publicized, hence becoming the sub-brand with the highest value among the series of Sinopec brands. We strived to push up the sales of our proprietary brands, and added 16 brands of products belonging to 5 types through customized marketing and associated branding. We carried forward new sales model as Easy Joy online store and live stream marketing, organized 450 live streams for the whole year, and carefully organized the thematic marketing event of the third “Easy Enjoy Festival”. We made headways in emerging businesses as car washing, advertising, fast food, and Easy Joy coffee, remarkably bolstering the comprehensive service for service stations.

We accelerated the integration of stations and their online applications and the construction of fuel card upgrading and replacement, improved the functions of one-click settlement of oil product sales, settling payment in multiple methods with invoice issued together, and other functions, forged ahead with the construction of the “Filling-up Sinopec” application, and improved the IT application and digitalization of service stations.

Fuel Oil

The business volume of fuel oil throughout the year reached 28.37 million tonnes, an increase of 21%.

The volume and profits of bonded business hit a record high. In 2020, the business volume of bonded oil was 8.08 million tonnes, an increase of 49%, and terminal distribution reached 7.1 million tonnes, an increase of 48%, with a market share of 43%, up by 7 percentage points, making Sinopec the largest supplier of low sulfur bunker fuel in China. We captured 43% of the port market, up by 7 percentage points. We actively integrated supervisory warehouses for import with bonded warehouses for export, strived to have the resources “stored and sold nearby”, and developed business models like “one ship serving multiple vessels”, “cross-regional direct supply”, “filling up oil on port of call”, “oil supply on floating vessel”, and “oil supply on anchorage”. We paid strenuous efforts in maintaining steady offshore supply chain during the pandemic response, and purchased more than 60% of domestic commodities from large-scale customers such as the world’s “three major miners”, “four largest grain traders”, and “ten largest containers”.

The quality of domestic trade operation steadily stepped up. Domestic trade realized a volume of 5.46 million tonnes, up by 64%. We signed official strategic cooperative agreement with Maritime Safety Administration of the Ministry of Transport, and became its major strategic supplier. The campaign of “visiting companies, providing services, expanding businesses, and creating profits” was regularly carried out. We made a push to the construction of onshore and offshore domestic trade branches, and completed the transfer of 24 offshore service stations in Guangdong Oil Products Company. Shandong Weishan No.1 oil refilling pontoon was put into operation.

Other Refined Products

The business volume of our self-marketing refined products was 38.66 million tonnes. We strengthened the connection between production and sales, and guaranteed the supply of our self-marketing products and the civil gas resources in Hubei during the pandemic response. We focused on market leadership and adhered to value orientation. The price of our selfmarketing products outran that of crude oil by 13.8 percentage points, helping refining to adjust product structure and improve economic efficiency. The annual business volume of asphalt was 10.42 million tonnes, breaking 10 million tonnes for the first time, a new annual high.

The total annual business volume of lubricate was 1.32 million tonnes, up by 9.5%, a record high. We adhered to technologyleading development, achieved new breakthroughs in high-end supporting facilities, obtained 35 authorized patents throughout the year, gained OEM certification and wrote 178 manuals, completed 139 domestic projects to replace the imports, developed 239 application cases for demonstration, and released more than 50 high-end new products, boasting global competitiveness. 86 new process formulas were developed, and 145 new raw materials were admitted, strongly underpinning our operation and profit generation.

Chemical Products

The business volume of chemical products for 2020 was 83 million tonnes, down by 6.5 million tonnes.

We implemented the operating philosophy of “putting customers at the core”, kept improving the operation process of “one plan for one customer”, and elevated the service and coordination of key customers. We enhanced strategic cooperation with major customers, integrated coordination and operation, services and business cooperation with cross-regional and clustered customers, optimized and integrated supply chain management, and ensured the production demand for major customers during COVID-19 pandemic and the turnaround. We strengthened the process management of customer services, boosted the application of information platforms, and fully utilized the “one plan for one customer” information collection system to deal with the needs of our customers. We leveraged the role of customer service centers, coordinated and solved all kinds of difficult problems, hence continuously raising the comprehensive services.

We guided and optimized production scheduling following the market and customer needs, and deepened the management of “one policy for one product” to meet customer demand for raw materials and product supply. We implemented the strategy of “basic + highend”, fully leveraged the linking role as bridges and bonds, established 156 MPRC groups, developed and promoted new products as synthetic resin, synthetic fiber, and synthetic rubber, increased the sales ratio of the three major synthetic materials with high value-added products and special materials, and facilitated the optimization and adjustment of product structure. We set up specific working group on medical and health care materials and degradable materials, and made in-depth research on the market for our company’s future reference. We revitalized the logistics stock assets of Sinopec, gave full play to the advantages of the railways within the plants, increased the economic traffic of railways and waterways, and saved costs for customers. We focused on the application of new technologies, and improved logistics services.

We further developed the ecommerce platform of “Chememall.com”, and established a new model of ecommerce platform combining online transaction and offline services. We sped up the integration of platform with production and sales, and regional and branch integration, and enhanced the effectiveness of integration. We steadily pushed forward the adjustment of the ecommerce mechanism, and orderly carried out the post setting, responsibility adjustment, outlet layout, and process reengineering to gradually transform to the ecommerce marketing model. We set up 10 new representative offices in Hefei and Inner Mongolia, further improving the outlet layout and raising the market sensitivity and serving functions. “Chememall.com” operated steadily. The sales volume of the ecommerce platform continued to climb throughout 2020, and its Phase Ⅲ construction entered into system development.

The total sales volume of catalyst products continued to grow. We redoubled efforts to ensure the high-quality operation of the refining and chemical facilities in Sinopec, and made breakthroughs in capturing domestic non-Sinopec market, realizing a sales increase of 2%.

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