Major energy SOEs bring in record amount of purchases at 6th CIIE

Chinese energy giants are seeing global cooperation grow, with several State-owned enterprises reporting a record purchase amount during the ongoing sixth China International Import Expo in Shanghai.

Several centrally administered SOEs, including China National Offshore Oil Corp (CNOOC), China Energy Investment Corp and State Development and Investment Corp, reported record purchase amounts during the event, as they continued to step up global cooperation in energy fields in recent years.

The country's oil majors, including China National Petroleum Corp (CNPC) and China Petroleum and Chemical Corp (Sinopec), said they are expanding purchase and cooperation deals with foreign enterprises, such as QatarEnergy, Saudi Aramco and Kuwait Petroleum Corp, during the CIIE. CNPC secured purchase agreements with 22 countries and regions worth $17.1 billion while Sinopec signed a 27-year liquefied natural gas supply and purchase agreement with QatarEnergy.

CNOOC said it hit a record this year, with procurement contracts signed during the event covering 16 major categories, including crude oil, natural gas, equipment and oilfield services. The accumulated contract value over the past six years surpassed $60 billion, the company said.

Among these, an agreement was signed with BASF to initiate the first large-scale domestic carbon dioxide conversion to synthetic gas technology, promoting the development of low-carbon technologies and the utilization of offshore natural gas resources, CNOOC said.

Hou Qijun, president of CNPC, called for continuous efforts to strengthen global energy cooperation and exchanges with partners in technological innovation while exploring the potential for green transition and low-carbon cooperation.

An analyst said the record number of purchase agreements highlights the immense market potential and growth opportunities in China's energy sector.

China has been creating more favorable conditions to advance opening-up — a pivotal driving force for central SOEs to engage with global partners and ensure energy security, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

The enterprises remain the main force facilitating the signing of business deals with overseas partners, Luo said.

As China has been stepping up efforts toward its dual carbon goals, many MNCs are eyeing the decarbonization potential in China, he said.

Global mining companies, such as Rio Tinto, vow to continue broadening their cooperation with China beyond trade to exploration, joint ventures and research and development for low-carbon solutions along the steel value chain.

China's green transition offers Rio Tinto a substantial opportunity for further cooperation between the two sides, said Jakob Stausholm, CEO of Rio Tinto, the world's largest iron ore producer, on the sidelines of the ongoing sixth CIIE.

Siemens Energy also showcased several low-carbon products and technologies during this year's event, vowing to "continue to work together with Chinese partners to push forward pragmatic cooperation and explore more frontiers in support of the country's green energy transition and modernization", said Anne-Laure Parrical de Chammard, member of the executive board of Siemens Energy AG.

"I acclaim China's vision and determination to further push forward energy transition through decarbonization, speed up construction of a new energy system, and ensure energy security," she said.

US materials science giant Dow said it is looking to explore potential collaborations and partnerships with Chinese partners to enhance business in the low-carbon sector, leveraging its global resources in combination with local development and service capabilities to provide customized solutions for local customers.

Puay Koon Chia, president of Dow Asia-Pacific, said the green transition and high-quality development in China have brought significant opportunities for Dow, which has further strengthened the company's confidence in the Chinese market.

The company will continue to strengthen its innovation and manufacturing capabilities in the country in the years to come, as China's economic policymakers have assured greater efforts to attract foreign capital, widen market access and ensure a level playing field for both domestic and foreign companies, Chia said.