China state-owned oil and gas company Sinopec aims at speeding up 2020 natural gas business development after the segment became a key revenue generator last year. Revenue from Sinopec’s natural gas business was driven by an increase in low-cost spot LNG imports, as well as higher downstream sales and prices.
Sinopec executive on Monday said that the company would optimize the upstream investment structure by raising natural gas production, sales, and operation efficiency as well as other means to promote the development of its natural gas business. This year, Sinopec aims at boosting production from its Fuling, Weirong, and west-Sichuan gas fields. It will also speed up the construction and launch of new gas filling stations.
In 2019, revenue from Sinopec’s exploration and development business was estimated to grow by 5.3% year-on-year to about 21.07 billion ($2.97 billion), driven primarily by the natural gas business, which sales and prices increased by 11.9% and 11.9% year-on-year, respectively. This is compared to a 3.1% year-on-year decline in Sinopec’s refining revenue.
