Natural Gas

In 2024, the company's natural gas business achieved 68.4 billion cubic meters in sales volume, a year-on-year increase of 9.3%, with total profit surging by 33%.

Optimized resource structure.  We strengthened resource coordination, diversified procurement channels, and optimized distribution networks, raising the share of domestic resources to 60.6%. We repeatedly set new records in winter supply volumes, enhancing economic efficiency, stability, and security. We maximized self-produced resources through close collaboration with upstream gas fields and partners, integrating new production capacity into the resource pool and fully marketing onshore gas output. For external procurement, we maximized supply from domestic sources, leveraging regional advantages to scale procurement of coal-to-gas and coalbed methane, effectively replacing high-priced spot resources from international markets. We strengthened supplier management and compliance processes to improve procurement efficiency. For imported resources, we reduced cost, optimized long-term contract execution and seized market windows to supplement spot resources, reducing high-priced LNG spot purchases year-on-year. Meanwhile, we mitigated price volatility risks through prudent hedging strategies.

Record-breaking profit.  We pressed ahead with optimization and coordination among various business sectors and processes to improve profit. We adopted differentiated marketing through introducing innovative pipeline gas pricing models (structured, fixed, and mid-to-long-term contracts), aligning procurement costs with sales prices. We leveraged trading centers for price discovery and fair resource allocation, boosting profitability. We capitalized on gas storage and peak-shaving advantages to maximize resource value, and terminal operations improved efficiency with 29 terminal companies selling 17.5 billion cubic meters of gas. Integrated collaboration was intensified. We launched LNG bunkering service and saw our first bunkering service in China delivered at Longkou, Shandong. In addition, we pioneered China's first LNG cold energy + refinery waste heat integration project, setting records in cold energy utilization scale, transmission distance, and conversion efficiency. We also advanced natural gas + geothermal, new energy, refinery waste heat integration, started a pilot hydrogen-blending project at the northwest sales branch, and achieved gas supply substitution for 22 refineries within the Sinopec system.

We strengthened development foundations through open and sharing policies, coordinating receiving terminals, pipelines and storage construction and operation.  Layout and efficiency of assets were constantly improved. Key infrastructure projects were steadily progressing, with our first LNG terminal in South China and Guizhou's first long-distance natural gas pipeline commissioned, the Zhoushan LNG terminal, national oil & gas measurement station, and Tianjin terminal light hydrocarbon separation projects approved. Additionally, we advanced connectivity and efficiency boosting projects, including the Qingzhou high-pressure pipeline and Pengzhou gas exporting station with supporting pipelines. We opened infrastructure for cooperation and value creation, including LNG terminals, storage facilities, and pipelines to third parties, offering diversified storage products tailored to customer needs. Thus, the innovative "gas+" integrated model proved very effective, achieving breakthroughs in ship bunkering, gas testing, and cold/heat energy coupling.

Oil Products and Easy Joy Services

In 2024, our domestic refined oil products sales volume reached 182 million tonnes, down by 2.8% YoY, of which retail volume was 110 million tonnes, down by 5.6% YoY. Automotive gas sales volume surged to 6.9 billion cubic meters, up by 91% YoY.

Oil & Gas Products Marketing & Services  We coordinated efforts across the board to maintain sales and enhance efficiency, securing a refined products sales volume above 180 million tonnes in the domestic market. Focusing on services, we strengthened retail fundamentals and maintained the leading position in brands recognition. High octane number and "X-Power" gasoline achieved positive growth. Retail network expanded to Australia, presence was established in Kazakhstan, and cross-border trade saw breakthroughs. Direct sales prioritized customer retention, capturing demand from market consolidation efforts to achieve 4% sales growth amid challenges. Strategic partnerships were forged with 52 industry-leading enterprises via corporate-level collaborations to build differentiated advantages. We accelerated LNG refueling stations deployment for heavy-duty trucks to capture the shifting from diesel demand, driving gas sales volume and efficiency to record highs and establishing a national leading refueling brand. Enforcement actions against illegal activities were intensified, assisting governments in cracking down on 11,000+ illegal retail outlets, restoring a good order in the market.

Easy Joy Services & Marketing  Prioritizing quality and profitability, and consumer needs, we coordinated marketing resources to integrate fuel-nonfuel synergies. Innovative campaigns, including New Year Promotion, Car Owners' Festival, X-Power Festival, Easy Joy Festival, were carried out to enhance integrated service capabilities. Competitiveness of self developed brands and centrally-procured goods was improved, while digital operations during major promotions drove 6% growth in nationwide store orders. We steadily expanded Easy Joy services into communities, schools, and other scenarios. We also diversified auto service models, i.e. franchise or self-operated, reaching 1,000 integrated auto service stores. Meanwhile, we pioneered "instant retail" by opening 59 Easy Joy Express flagship stores and around 1,700 online stores across 24 provinces/ municipalities, facilitating the national campaign to build convenient communities that needs could be met within 15-minute' walking distance, serving more than 1.3 million customers. Sinopec car fueling membership exceeded 130 million, with about 70 million monthly active users.

Retail Network Development  We strengthened control over network in key regions to increase profitability, expanded networks in strategic regions to capture high-end markets, secured premium sites via proactive lease renewals, and advanced capital-light models to reduce costs while maintaining network integrity. As a result, we owned over 30,000 self-operated stations, kept retail volume above 100 million tonnes, and reinforced the marketing advantage. Furthermore, depot layout was optimized, storage and transport facilities sharing was enhanced and smart depot upgrades was progressed.

Accelerated Growth in New Energy Business  We focused on the three pillars of development, operations, and platforms to drive differentiated growth, quality and efficiency. Total platform electricity charging volume exceeded 1.8 billion kWh, ranking among China's top 10. we added 11 million new charging customers, with cumulative EV battery swap/charging stations surpassing 10,000 and charging points nearing 100,000. Hydrogen business also progressed steadily, with 142 hydrogen refueling stations in operation, about 30% of the national total, forming a "1+5" hydrogen corridor pattern (Beijing-Shanghai corridor became the world's longest). PV projects were further developed, with 1,581 sites of distributed PV added, totaling 220 MW of installation capacity.

Fuel Oil

In 2024, our supply in the bunker fuel adhered to the overall approach of "prioritizing profits and coordinating scale with profits". We flexibly adjusted business strategies. The comprehensive discount of low-sulfur bunker fuel reached USD 35 per tonne. The high-sulfur bunker fuel remained profitable. For Marine Gas Oil (MGO), by focusing on blending the lighter components to improve the heavier ones, we achieved win-win in both production and sales. Our market share of the bunker fuel firmly ranked first in China.

Our domestic bunker fuel business continuously picked up.  Sinopec successfully won the bid for the MFO project in the northern region of the Maritime Safety Administration of the Ministry of Transport, and became a bunker fuel supplier for Shanghai Beihai Shipping and Shandong Marine Group. The terminal sales volume of bunker fuel accounts for 47%, an increase of 10 percentage points. The sales volume of the in-operation water-based stations is 227,000 tonnes, representing a growth of 2.7%.

Sinopec actively explored the new energy business for ships, and the trial of new energy for ships was successful.  The demonstration of the first domestic B5 diesel refueling at an inland waterway water station was completed, and we became a pilot company for biodiesel application by the National Energy Administration. We also carried out strategic cooperation with 14 leading domestic biodiesel companies. The Shenggang Station produced 112 tonnes of hydrogen from methanol, setting a new high in both production and sales. In cooperation with China National Electric Engineering Corporation and CIMC Enric, Sinopec locked in green methanol resources in advance and set a record for the largest single-ship methanol refueling in China. We took the lead in the successful voyage of the first methanol-fueled power ship in Zhoushan, establishing advantage in the supply of methanol feedstock.

Other Refined Products

In 2024, the total volume of other self-sold refined products exceeded the annual target at 108%.

Our trading volumes of liquefied petroleum gas (LPG), sulfur, isooctane, and paraffin wax increased, among which LPG grew by 7%, above ten million tonnes. The trading volume of sulfur reached the historic high for two consecutive years. We kept fostering differentiated and high-end operation and sales, focusing on the market, customers and profits, and producing more products with high added value. We expanded efforts in converting "oil products to special products". The production and sales of high-end carbon materials as coke for negative electrode materials, low-emission pre-baked anode coke, and needle coke grew by 88%. We vigorously carried forward the applications of modified asphalt, odorless and environmentally friendly asphalt, and asphalt for race tracks. The Donghai asphalt was successfully used in the Shanghai F1 race track.

Our sales of lubricants and grease went up by 4%, maintaining the largest share in the domestic market. Overseas sales expanded by 26%, rounding a double-digit growth for five consecutive years. We intensified business development in strategic and emerging fields, and formulated strategies for high-end projects. By adhering to the model of "technology+market+service", our development and layout in emerging fields focused on the whole business chain, various regions, and major projects. Naphthenic-base transformer oil realized applications with ultra (extra) high voltage certifications, and synthetic high-temperature heat transfer oil was applied on a large scale.

Chemical Products

Sinopec abided by the principle of "customer-centric" and made every effort to boost comprehensive service capabilities.  We put our customers' needs at heart, fine-tuned the customer planning management process, reinforced the overall management of resources, scientifically responded to resource fluctuations, and honed the ability to ensure customer supply. We expanded the reserve of self-operated resources, explored cooperation with upstream and downstream partners, built a multi-channel warehousing network, assisted core customers in feedstock inventory management, and achieved diversified feedstock security. Sinopec became better able to provide tailored services to customers, closely dovetail the cooperative relationship between customers, production subsidiaries, and research institutes, augment the efficiency of product innovation, and meet the differentiated needs of our customers. We elevated the cooperation with our strategic customers, optimized the operation mechanism of key account directors, coordinated visits to strategic customers, tried new models as rigid payment and take-or-pay, intensified the resource guarantee, and deepened the integration of development with industry leaders.

We coordinated and optimized the allocation of resources to ensure the stable supply of chemical products and feedstock,  established a multi-level production and sales connecting system, gave full play to the synergy of production and sales, shared the permissions of the business intelligence system with our subsidiaries, strengthened seamless information transfer, dynamically fine-tuned the device load and production scheduling plan, and made every effort to safeguard the market supply. We carefully safeguarded the supply of feedstock, optimized the strategies for feedstock supply and product sales, assisted the subsidiaries in resuming the operation of their production facilities, ensured the commissioning and reaching of full production capacity of new facilities, and enabled the smooth launch of newly added production capacity into the market. We enhanced the end-to-end integration and coordination of logistics, continuously facilitated the "time-limited delivery" service, managed our customers' expectations regarding the arrival of goods, and ensured the smooth connection of all links from order placement to delivery. We established and improved the standardized service process of on-site offices at factories, refined the goods pickup rules, streamlined the goods pickup process, uplifted the delivery efficiency, ensured the unimpeded transfer of logistics information, and cut the costs in communicating with our customers.

We proactively integrated the chemical industry chain and the innovation chain,  gave full play to the role of the "radar" at the forefront of the market, accurately identified market demands, and got the efficient operation of production, sales, research, and application guided by market demands going, so as to achieve the deep integration of the industrial chain and the innovation chain. We solidified the cooperation of the "iron triangle" of production, sales, and research, cemented the synergy with customers, and achieved breakthroughs in the publicity of products such as the anti-orange peel products, TPO, and the electrical insulation film. We also pushed ahead with green and low-carbon development. The sales volume of green products increased compared with that of 2023, and we marketed bio-based polyolefin for the first time. Continued efforts were made in recycling of waste plastics. We established a resource database of recycled plastic suppliers, integrating them into the "film to film" circular recycling chain of Sinopec.

Sinopec fully unleashed the effects of integrated logistics management,  dovetailed and gave full play to our advantages in professional operation of chemical logistics, integrated logistics resources, continuously up-scaled the proportion of product distribution, and actively transformed and upgraded logistics from security-oriented to a value-based one.

We accelerated the promotion of digital and intelligent marketing management,  completed the pilot business upgrade and switching to Chememall.com 2.0, and built 8 new scenarios like intelligent resource allocation, greatly cutting the system operation volume, improving the operation efficiency, and picking up the customer experience. We made full use of information technology means to drive the full life cycle management of orders, implement functions as extending the order validity period, automatic settlement of actual loading quantity, undetermined flow direction, and multi-platform data integration. As a result, the number of order modifications has dropped significantly.

Catalysts

In 2024, Sinopec struck a balance between the operation of quantity and price, fine-tuned our marketing strategies, accelerated the pace of domestic substitution, and continuously consolidated our leading position in the domestic catalyst market. Among our subsidiaries, we completed the first domestic substitution of products, namely, silver catalysts for Fujian Refining & Petrochemical Company Limited (FREP) and Gulei Petrochemical, as well as high-end polyethylene catalysts for Zhongke (Guangdong) Refinery and Petrochemical Company.

For non-Sinopec markets, we've tapped into 55 new markets, successfully seizing the 2-year FCC catalyst order from Daqing Petrochemical Company, recapturing the 6,000-tonne FCC catalyst framework order from Sichuan Petrochemical Company, and replacing untapped markets as Zhejiang Petrochemical, Wanhua Chemical, and Fuhaichuang Petrochemical with domestic high value-added products as continuous reforming catalysts, PDH catalysts, silver catalysts, and toluene disproportionation catalysts.

Sinopec actively provided high-quality and efficient services, fully leveraged the targeted service role of the four expert studios, tapped into the advantage of big data analysis for abnormal operation diagnosis for refining and chemical plants, and pooled the strengths of production, sales, R&D, and application to expand the markets. For the first time, we undertook the whole-cycle services of silver catalyst unloading, transferring, and loading for Zhongke (Guangdong) Refining & Petrochemical Company, promptly guided and solved problems as blue smoke trailing from the flue gas of the catalytic unit in Lanzhou Petrochemical and steam turbine vibration in the catalytic unit of Yan'an Refinery, effectively raising customer satisfaction. We also implemented resident service, hired two local technical service experts from the United States, and significantly enhanced the timeliness of technical services in overseas markets.