Li Fanrongs performance as general manager of new CNPC group

category:Finance
 Li Fanrongs performance as general manager of new CNPC group


In recent years, the personnel changes of the three oil central enterprises are frequent. Specifically, Zhang Jianhua, who was general manager, director and Deputy Secretary of CPC group in July 2016, was promoted to director of national energy administration in November 2018, becoming the first ever leader of national energy administration from central energy enterprises. He also served as a member of the Party group of national development and Reform Commission. At the end of December 2018, Zhang Wei, one of the youngest CEOs in central enterprises, who has worked in Sinochem Group for more than 20 years, parachuted into CNPC group to fill the vacancy of general manager. However, since the establishment of the national oil and gas pipeline network group began to speed up in 2019, Zhang Wei served as the head of the preparatory group of the national pipeline network group in the second half of 2019. In December last year, the state pipe network group was officially established. Zhang Wei served as the party secretary and chairman of the group, and resigned from the post of PetroChina.

In addition, on January 17, 2020, Dai Houliang, former chairman of Sinopec Group, was appointed chairman of CNPC group.

Since 2020, the two new leaders of CNPC have not been easy under the background of multiple challenges such as oil and gas system reform and energy security. Upstream, there is pressure to increase exploration and development efforts to ensure oil and gas production; in the middle reaches, the national oil and gas pipeline network group has been established to divest three barrels of oil divested pipeline assets and dispatch, with the largest number of pipelines owned by PetroChina; in the downstream, in response to the divestiture of the pipeline network, PetroChina is increasing its downstream sales of natural gas.

According to the prediction of Petroleum Market Research Institute of China Petroleum Group Economic and Technological Research Institute, referring to the characteristics of refined oil market during the SARS period in 2003, it is estimated that the epidemic will lead to the overall domestic demand for refined oil in 2020 still showing a V trend, and the impact of the epidemic on the refined oil market will mainly focus on the first quarter, especially February, which will be the lowest point of supply and demand. From the demand side, it is expected that the demand for domestic refined oil in the first quarter will drop by 35.7% year on year. From the perspective of supply and demand balance, it is expected that the supply will exceed the demand by 27.08 million tons in the first quarter of 2020, and the supply and demand situation will be significantly improved in the second quarter.

In terms of natural gas, according to the Institute of natural gas market of China Petroleum Research Institute, the first quarter was originally the peak of domestic gas supply, and domestic gas supply enterprises prepared a large number of resources to guarantee supply. However, affected by the sharp decline in demand caused by the epidemic, the market is oversupplied. It is expected that after the end of the epidemic in the second quarter, the enterprises will resume production and the supply and demand situation will improve. If the epidemic continues into the second quarter, the problem of oversupply will be more prominent.

Ren Hongbin, deputy director of the state owned assets supervision and Administration Commission of the State Council, said that the state owned assets supervision and Administration Commission would not change the production and operation objectives and reform tasks set at the beginning of the year. We will stick to our goals and ensure that the tasks remain unchanged and the pressure is not reduced. We will spare no effort to complete all the goals and tasks of the year and provide strong support for the smooth operation of the national economy. Of course, the challenge is very big. To achieve the goal without changing it, we need to work harder. Therefore, we must firmly establish the idea of living too tight , increase efforts to reduce costs, improve quality and efficiency, and make the best efforts to offset the losses caused by the epidemic.

In order to reduce the gas consumption cost of enterprises and support enterprises to resume production, the national development and Reform Commission issued a notice a few days ago. From February 1 to June 30, it is required to reduce the gas consumption cost of non residents in stages. It was decided in the notice that, within the framework of the current natural gas price mechanism, the off-season price policy should be implemented in advance to reduce the gas cost of enterprises as much as possible. The price of non residential gas at the government guided price shall be appropriately lowered based on the benchmark gate station price, so as to reduce the price level as much as possible.

According to the periodic policy of reducing the electricity and gas consumption cost of enterprises reported by CCTV, it is expected to reduce the electricity and gas consumption cost of enterprises by more than 63 billion yuan, deducting 59.5 billion yuan of electricity fee reduction announced by the two major power grid companies, and the cost to be borne by the natural gas industry chain is more than 3.5 billion yuan. This means that the price cuts of upstream gas supply enterprises such as PetroChina are inevitable.