In 2007, Sinopec was committed to further implementing relevant energy conservation policies. Sinopec Energy Conservation and Emission Reduction Leading Group was established to promote energy-saving management measures and assessment measures for the objective-based energy-saving responsibility system, to deepen the implementation of energy conservation planning, and to establish and stick to systems such as energy conservation session on monthly or quarterly basis. Great effort has been made in a large number of energy-saving projects such as coal-replacing-oil, gas-replacing-oil, electric power grid modification, water-flooding adjustment, remaining heat utilization. Remarkable achievements have been made in energy conservation. Compared with year 2006, energy consumption per RMB10,000 gross industrial output value in 2007 was decreased by 6.1%, saving 4.5 million tonnes of standard coal equivalent (SCE).

By various means of management and technology, oilfield companies started focused on both new and existing programmes and projects, making good progress in energy conservation and emission reduction. The subsidiaries were active in organizing technical seminars on energy conservation and emission reduction, and in promoting profitable and well performing technologies. Oilfield companies were also active in key energy conservation projects such as adjusting fuel structure, modifying rigs at different points in the network as well as separating oilfields power system from the local power grid, etc. Last year, a total of 77,200 tonnes' oil consumption capacity was replaced and conservation, saving 160 million kwh of power. Comprehensive energy consumption per unit of oil and gas was reduced by 6.07%. Comprehensive energy consumption per RMB10,000 production value dropped 7.16% year-on-year, saving 380,500 tonnes of SCE and 3.32 million cubic meters of water.

Refineries further optimized energy use for refining process, focusing on thermal combination between units and low-temperature heat utilization. Thus 69,000 tonnes of standard oil was saved. The refineries were committed to applying vacuum deep-cut technology, reducing circulation ratio in coking process and shortening coking cycle. Residue output was reduced by 560,000 tonnes and residue treating capacity increased by 1.92 million tonnes. Continuous efforts were made in optimizing hydrogen resource, recovering coking LPG, reducing the combustion of crude oil in pipelines, saving water and reducing emission, etc. The upgrading for absorption stabilization system in coking process helped increase LPG yield by 110,000 tonnes. The crude oil combustion reduction in pipelines project saved 35,000 tonnes of standard oil. Water saving and emission reduction project saved 16.79 million tonnes of water, reducing sewage emission by 13.69 million tonnes. Comprehensive energy consumption for both refining operation and refining facilities was further reduced than the previous year.

Chemical plants carried out technical upgrading for the weak links of the key facilities and promoted advanced energy saving projects such as air preheating technology for ethylene crackers, twisted tape heat transfer technology for ethylene crackers, absorption heat pump technology for synthetic fiber, etc. as a result, energy consumption of ethylene production was lowered to 669.61 kg standard oil per tonne, representing a decrease of 5.52 kg standard oil per tonne year on year. Chemical plants promoted new emission reduction technologies such as condensed water and sewage recovery, etc., saving 17 million tonnes of water.

Energy consumption analysis and control system were improved in auxiliary production and utilities enterprises. Efforts were made in setting products energy consumption quota, delivering specific energy conservation technical upgrading plan to subsidiaries and branches and adjusting energy consumption structure. With fuel oil consumption reduction as a breakthrough point, based on thorough investigation, the fuel oil consumption target breakdown for the whole year was formulated and all subsidiaries and branches were checked against their quota on a monthly basis. Last year, the SCE consumption for power generation of Sinopec thermal power stations was 359.45 g/kwh, deceased by 3.53 g/kwh.
By reinforcing real-time measurement on energy consumption and establishing assessment system, the refined products sales subsidiaries set up energy-saving models and promoted best practice. The power consumption was reduced by 42.22 million kwh year-on-year and the water consumption decreased by 8.42 million tonnes over last year.