Energy Revolution to build an energy power

Ten years of hard work, spring and autumn. The energy revolution is surging.

On June 13, 2014, at the sixth meeting of the Central Leading Group for Financial and Economic Affairs, the CPC Central Committee with Comrade Xi Jinping as the core took a far-sighted view and assessed the situation, and creatively put forward a new energy security strategy of "four revolutions and one cooperation", drawing a grand blueprint for energy development in the new era. General Secretary Xi Jinping pointed out that it is necessary to promote the energy consumption revolution and curb unreasonable energy consumption; It is necessary to promote the energy supply revolution and establish a diversified supply system; It is necessary to promote the energy technology revolution and drive industrial upgrading; It is necessary to promote the revolution of the energy system and open up the fast lane of energy development; It is necessary to strengthen international cooperation in all directions to achieve energy security under open conditions.

Transformation and upgrading of consumption structure and continuous improvement of energy efficiency

In the past ten years, the energy consumption revolution has radiated from point to area, and has radiated to the whole country step by step, with remarkable results.In Inner Mongolia, the country's first zero-carbon industrial park built by Envision Group has settled in the coal city of Ordos, and fossil energy in industrial production is being replaced by green, stable and low-cost new energy. In Hebei, Xiong'an New Area comprehensively utilizes electricity, natural gas, geothermal and solar energy, and the "Xiong'an model" of clean and intelligent terminal energy consumption has begun to take shape; In Guangdong, Shenzhen, which ranks fourth in terms of economic output among Asian cities, has energy intensity and carbon emission intensity only 1/3 and 1/5 of the national average, and the concept of energy conservation and carbon reduction is deeply rooted in the hearts of the people.

Since the 18th National Congress of the Communist Party of China, China's energy consumption structure has been significantly optimized. The cumulative reduction of energy consumption per unit of GDP is 26.2%, which is equivalent to reducing energy consumption by about 1.4 billion tons of standard coal, and supporting the average annual growth rate of the national economy of 6.5% with an average annual growth rate of about 3% of energy consumption, and continuously improving energy efficiency. The proportion of coal consumption fell from 65.8% in 2014 to 56% in 2021, an average annual decline of 1.4 percentage points, the fastest decline in history. During the same period, the share of clean energy consumption rose from 16.9% to 25.5%, accounting for more than 60% of the increase in energy consumption.

The supply system is diversified and high-quality development is moving forward steadily

On January 27 this year, General Secretary Xi Jinping came to Shanxi Ruiguang Thermal Power Co., Ltd. for investigation and research. He stressed: "Rich in coal, poor in oil and low gas is China's national condition, and it is necessary to consolidate the foundation of domestic energy production and ensure the safety of coal supply", "power supply and heating are related to the overall situation of economic development and social stability, and are major matters related to people's livelihood."

"The general secretary showed us the way forward." Hu Junfeng told reporters that in terms of clean and efficient utilization of coal, the company has promoted the "three reforms linkage" in an orderly manner, and actively explored the pilot flue gas carbon dioxide capture and resource utilization, with remarkable results. "In terms of the diversified development of the energy supply system, the company is currently focusing on transformation, laying out new energy power generation projects such as photovoltaic and wind energy, and actively exploring the integrated development of traditional coal-fired and new energy."

In the past ten years, General Secretary Xi Jinping has visited Shanxi many times for investigation and research, and has high hopes for Shanxi's transformation and development. In May 2019, the eighth meeting of the Central Committee for Comprehensively Deepening Reform deliberated and adopted the "Opinions on Carrying out the Comprehensive Reform Pilot of the Energy Revolution in Shanxi", supporting Shanxi to strive to be the vanguard of the national energy revolution through the comprehensive reform pilot. In May 2020, General Secretary Xi Jinping pointed out during his inspection and investigation in Shanxi, "If the road is right, we must stick to it, work for a long time, and don't repeat or toss." It is hoped that Shanxi will take the lead in creating a new path in transformation and development. ”Hou Bingrang, member of the party group and deputy director of the Shanxi Provincial Energy Bureau, introduced that as a "test field" for the comprehensive reform of the national energy revolution, Shanxi Province focuses on improving the quality of energy supply, gradually establishing a diversified energy supply system, and ensuring the continuous improvement of national energy security capabilities.In terms of increasing coal production and ensuring supply, in 2021, Shanxi Province's coal output will reach 1.193 billion tons, accounting for nearly 1/3 of the national output, a year-on-year increase of 113 million tons, accounting for nearly 2/3 of the national increase, and ensuring supply to 16 brother provinces at long-term agreement prices; In terms of power structure optimization, all coal-fired power units in operation in Shanxi Province have completed ultra-low emission transformation, and units of more than 600,000 kilowatts account for 36.34% of the installed thermal power capacity. The scale of power transmission continued to expand, with an output capacity of 33 million kilowatts; In the field of new energy power, as of the end of June this year, the installed capacity of new energy in Shanxi Province reached 40.12 million kilowatts, accounting for 34.46%, and the installed capacity of wind and solar power generation ranked among the top in the country; In terms of the development of unconventional natural gas industry, the coalbed methane industrialization base in the eastern margin of the Qinshui Basin and the Ordos Basin has been preliminarily completed, the development and utilization of coalbed methane has been gradually industrialized, and the "three vertical and eleven horizontal" pipeline network of the province "across the east and west, through the north and south" has been basically formed.

Under the wave of energy revolution, Shanxi's traditional coal industry has also derived a development path of "integration of coal and coal power, integration of coal power and new energy, integration of coal and coal chemical industry, integration of coal industry and digital technology, integration of coal industry and carbon reduction technology".In the past ten years, Shanxi's energy supply-side reform process is a microcosm of the continuous improvement of China's energy supply capacity and supply quality. At the end of 2012, China's installed renewable energy power generation capacity accounted for about 28% of the total installed power generation capacity. By the end of 2021, China's cumulative installed capacity of renewable energy power generation reached 1.06 billion kilowatts, accounting for 44.8% of the total installed power generation capacity, achieving a huge leap. At present, China, which adheres to green development and vigorously develops renewable energy, is telling the world wonderful stories of such as "the wind in Zhangbei lights up the lights of Beijing".

Technological progress is changing with each passing day, and innovation-driven results are demonstrated

In the production workshop of Shaanxi Yanchang China Coal Yulin Energy Chemical Co., Ltd., China's new generation of methanol to low carbon olefins (DMTO) complete industrial technology production line with independent intellectual property rights is running stably. "Using a new generation of DMTO special catalysts, the output of ethylene propylene reached 694,600 tons last year, and the internal profit was estimated to be about 1.218 billion yuan." Lv Chuncheng, deputy general manager of Shaanxi Yanchang China Coal Yulin Energy and Chemical Co., Ltd., said that the comprehensive energy consumption of coal-to-methanol is better than the industry benchmark, the carbon dioxide emission is about 60% lower than the advanced value of the same industry, and the sewage reuse rate is more than 97%.

In September 2021, General Secretary Xi Jinping emphasized during his inspection of Yulin that Yulin is an important national energy base and has made important contributions to the country's economic and social development. The coal chemical industry has great potential and great prospects, and it is necessary to improve the comprehensive utilization efficiency of coal as a chemical raw material, promote the high-end, diversified and low-carbon development of the coal chemical industry, take strengthening scientific and technological innovation as the most urgent task, and accelerate the research of key core technologies.Low carbon olefins such as ethylene and propylene are known as the cornerstones of the modern chemical industry, but their production has long been strongly dependent on petroleum resources. How to get out of bondage? The use of China's relatively abundant coal resources to partially replace oil is not only in line with the characteristics of its own resource endowment, but also an important measure to achieve energy diversification and ensure energy strategic security, and coal-to-olefin technology is one of the important directions.If you want to make olefins from coal, you must go through the intermediate process of synthesizing methanol, which is a mature process, but how to make low carbon olefins from methanol is the key technology we need to overcome. Liu Zhongmin, academician of the Chinese Academy of Engineering and director of the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences, said that after decades of efforts, China's methanol to low carbon olefins (DMTO) complete sets of industrial technology has been successfully developed.At the 2014 National Science and Technology Award Conference, methanol-to-olefins technology won the first prize of the National Technological Invention Award, and General Secretary Xi Jinping personally presented the award to Liu Zhongmin, the award-winning representative. In 2021, at the Academician Conference of the Chinese Academy of Sciences and the Chinese Academy of Sciences and the 10th National Congress of the China Association for Science and Technology, General Secretary Xi Jinping pointed out in his speech: "The continuous innovation of methanol-to-olefins technology has driven the rapid development of China's coal-to-olefins industry. ”Today, this technology has been upgraded to the third generation, and the unit consumption of methanol per ton of olefin has been reduced from about 3 tons to 2.60-2.70 tons, and the energy consumption and carbon emissions per ton of olefin have decreased significantly. At present, 31 sets of DMTO series technologies have signed technical implementation license contracts, with an olefin production capacity of 20.25 million tons/year, accounting for about 1/3 of the national production capacity, and 16 sets of industrial units have been put into operation with an olefin production capacity of 9.3 million tons/year, with an additional output value of more than 90 billion yuan/year.

In recent years, China's energy industry has given full play to the key supporting role of scientific and technological innovation, focused on improving the ability of independent innovation and the level of major equipment technology, and seized the commanding heights of global energy transformation and development in the fields of oil and gas, power grid, etc.

On April 10 this year, General Secretary Xi Jinping connected the "Shenhai No. 1" operation platform during his inspection in Hainan. "With our own equipment, we can develop our oil and gas, increase our energy self-sufficiency, and ensure our energy security," he stressed. This is a matter of strategic importance. ”

Under the earnest advice of "relying on itself", CNOOC Limited continues to strengthen its originality and leading scientific and technological research, and firmly grasps equipment manufacturing in its own hands. On July 17 this year, China's first self-developed shallow underwater Christmas tree system development project was successfully ignited in Jinzhou 31-1 gas field in the Bohai Sea, achieving a single well test gas production of 310,000 cubic meters per day, which can be used by 1,500 families for one year. This hard-won "oil tree" has achieved a historic breakthrough in the underwater oil and gas development model of China's shallow waters from "0" to "1".

Since the 18th National Congress of the Communist Party of China, China's energy field has made steady progress in scientific and technological innovation, a large number of new energy technologies, new models and new business formats have flourished, and technological progress has become an important force to promote the development and reform of the energy industry.

Institutional reform overcomes difficulties and builds a solid foundation for an energy power

After 6 years of brewing and more than 70 days of hundreds of negotiations, on December 9, 2019, the State Pipeline Network Group was officially established, the oil and gas industry has realized the separation of transportation and marketing, and the integrated business model of upstream, midstream and downstream that has lasted for decades has finally broken the ice.

"The pipeline network is the main artery and highway of oil and gas transportation, and for a long time, as an important link in oil and gas production and transportation, the construction and operation of oil and gas pipeline network are mainly concentrated in the hands of a few large oil and gas producers, and the pipelines between various companies are not compatible and shared." Liu Yijun, a professor at China University of Petroleum (Beijing), said that the highly centralized state is not conducive to pipeline network construction, resource allocation and market supply, and third-party market entities have repeatedly been restricted from accessing the network.

Under the requirements of General Secretary Xi Jinping to "unswervingly promote reform, restore the attributes of energy commodities, and build a market structure and market system of effective competition", and under the overall reform idea of "controlling the middle and letting go of both ends", the independent operation of the national pipeline network group came into being, which is a key step to implement the relevant requirements of General Secretary Xi Jinping on the production, supply, storage and marketing system of coal, electricity, oil and gas, and is the only way for China to deepen the reform of the oil and gas system.

Since the reform, the professional integration of China's oil and gas pipeline network has been successfully completed, the skeleton of "one national network" for natural gas has been initially formed, and the capacity building of pipeline network channels has entered the "fast lane". At the same time, through the fair opening of the pipeline network and LNG receiving terminals, the vitality of upstream and downstream market players has been doubled, and the information of the whole industry has been openly shared and connected.

"In the past, we had a single sales channel, and if we wanted to send natural gas to a farther market, we had to pay a lot of tolls." Pu Haiyan, head of Xinjiang Qinghua Smart Energy Development Co., Ltd., told reporters that now the national pipeline network is fair and open, everyone stands on the same starting line and competes fairly, and the sales cost of enterprises has been greatly reduced.

With the advantage of centralized dispatch of "one network across the country", the average transportation distance of natural gas pipeline transportation in 2021 decreased by 3% year-on-year, saving more than 2 billion yuan in pipeline transportation costs for the whole society. More and more gas-producing enterprises like Xinjiang Qinghua are really feeling the benefits brought by the reform of the oil and gas system.

On another track, after two rounds of power reform, traditional power generation enterprises have experienced a painful "easy change", and the power industry has changed from semi-closed to open, from centralized and single to decentralized and diversified. Among them, the incremental distribution business is open to social capital, and 5 batches of a total of 459 incremental distribution reform pilot projects have been gradually implemented. There are about 5,000 electricity sales companies registered with power trading institutions, forming a market pattern of buying more and selling more. Consumers not only have electricity, but also have the right to choose and participate. In 2021, the country's market-based trading electricity was 3.8 trillion kWh, accounting for 45.5% of the total electricity consumption of the whole society.

The wave of energy revolution is surging around the world, and China has continuously made new breakthroughs in international energy cooperation, contributing more and more Chinese wisdom and strength to promoting the sustainable development of global energy and building a cleaner and more beautiful world. Zhang Jianhua, director of the National Energy Administration, pointed out that since the 18th National Congress of the Communist Party of China, China has continuously strengthened the top-level design, greatly relaxed the access of foreign investment in the energy field, and completely canceled the restrictions on foreign investment in coal, oil and gas, electricity (except nuclear power), new energy and other fields, and promoted the liberalization and facilitation of trade and investment in the energy field. Pragmatic cooperation has yielded fruitful results, and has successively established intergovernmental energy cooperation mechanisms with more than 50 countries and regions, established cooperative relations with more than 30 international energy organizations and multilateral mechanisms, and completed a large number of landmark energy projects such as China-Russia, China-Central Asia, China-Myanmar oil and gas pipelines, Brazil's beautiful mountain UHVDC transmission, and Pakistan's Chashma nuclear power plant. China has successfully hosted important international conferences such as the Belt and Road Energy Ministers' Meeting, the International Energy Transformation Forum, the APEC Energy Ministers' Meeting, the G20 Energy Ministers' Meeting, and the BRICS Energy Ministers' Meeting.

Do not give up, practice far. The past decade has been an extraordinary decade in the process of China's energy revolution. Looking to the future, under the goal of carbon peak and carbon neutrality, China's energy industry will become a powerful engine to support high-quality economic and social development.

As a global leader in high-end energy equipment solutions, Sany Petroleum will continue to deepen the oil and gas market, continuously promote the innovation of oil and gas development methods, help the domestic oil and gas market reduce costs and increase efficiency, low-carbon and environmental protection, and contribute to the development of China's unconventional oil and gas resources and the green and sustainable development of the oil and gas industry!