China / Life

Investment by Sinopec creates jobs

By Zheng Xin and Zou Shuo (China Daily) Updated: 2017-08-31 07:46

Major energy company has injected $3 billion into Inner Mongolia region

A major Chinese energy company has pumped 20.2 billion yuan ($3 billion) into the Inner Mongolia autonomous region by creating jobs and boosting the economy.

During a four-year spell up to 2016, China Petroleum and Chemical Corp, or Sinopec, also generated 900 million yuan of tax revenues for the local government.

The energy and chemical juggernaut has been a major player in the region, setting up 295 oil and gas stations in the past eight years.

"These stations had an accumulated sales volume of 12.9 million metric tons by July, and they have substantially improved local infrastructure and increased energy supply," Sinopec stated.

In Ejin Banner of Alxa League, a scenic spot famous for its populus euphratica forests and the equivalent of a county, Sinopec has opened 13 oil stations to increase supply.

The company has also set up restrooms and convenience stores for tourists.

"Before, there were only a few gas stations in the region and sometimes travelers had to wait until midnight to fill up their cars during the peak tourism season in September and October," Sinopec pointed out.

Since 2016, the group's Inner Mongolia subsidiary has delivered 6,780 tons of oil products to farming communities at discount prices, saving them 2.42 million yuan.

Last year, Sinopec signed a cooperation agreement with the Bureau of Commerce of the Inner mongolia autonomous region to sell local goods at its 24,000 Easy Joy convenience stores.

This has boosted sales of more than 1,000 products from about 30 local enterprises.

"We have also financed major projects in exploring the region's vast natural gas reserves," the company confirmed.

Back in 2005, the Daniudi gas field became Sinopec's largest project with annual prduction capacity of 1 billion cubic meters.

Fast forward 12 years later, the site has 1,559 wells and 64 gas stations with annual production capacity topping 4 billion cu m.

To prove how important the field is to the economy, it supplies almost 20 million households with natural gas.

"In the old days coal was our main source of energy, which cost us thousands of yuan every year," said Wu Ningqi, a local resident in the Erdos region of Inner Mongolia.

"My annual energy bill has been dramatically reduced to hundreds of yuan with the replacement of natural gas," Wu added.

By the middle of May, the Daniudi field had produced up to 30 billion cu m of natural gas, which is the equivalent of 60 million tons of coal.

This in turn has cut carbon dioxide emissions by 36 million tons, sulfur dioxide by 900,000 tons and nitrogen oxide by 300,000 tons.

Already the National Development and Reform Commission has approved a 2,292-kilometer gas pipeline, linking Erdos with Hebei province's Cangzhou city.

The 34.4 billion yuan project will move natural gas to Xiongan New Area, which is being developed to help cut pollution and congestion in the Beijing-Tianjin-Hebei region.

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