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As China's largest oil products supplier, Sinopec plays an active role in the national oil products supply system based on its advantages in network, management, service, etc. In 2008, facing an unprecedentedly volatile international crude market and a historically rare frozen weather with snow storm in Southern China and the devastating Wenchuan earthquake, Sinopec made full play its main oil products transportation channels to timely adopt stable market supply and achieved a round success in fighting against the earthquake, guaranteeing supply during the Olympic Games and the supply in summer and autumn harvest and planting seasons.
During the first three quarters of 2008, the refined oil products supply market was tight. In order to ensure the market supply, Sinopec made every effort to increase production and supply for oil products used in key areas and industries and to carry out the political and social responsibilities as a state-owned enterprise for the sake of national economic and social development. We adopted such measures as enhancing capacity utilization, adjusting structure, increasing input, halting export, reducing ethylene production and OME with local refineries, etc to guarantee resource increase and market supply. In the first half of 2008, the accumulated processed crude reached 85.94 million tons, up by 6.1% y-o-y, refined products 52.41 million tons, up by 9.2%, refined products yield hit a historical high of 60.9% . The imported refined products accumulated to 2.75 million tons in the first half of the year, accounting for almost 55% of the national total import volume. Sinopec helped relieve the tight situation of oil products supply by purchasing refined products from local refineries at high prices, fully tapping inventory potentials and orderly adding oil products to the market.
In ensuring oil supply during summer harvest period, Sinopec arranged resources ahead of time according to oil demand and supply more diesels to the harvest areas. Special services and supportive measures are also actively offered to the agriculture sector. A supply channel and a specific service station for reaping machines have been set up to ensure timely and proximate service in harvesting areas. An emergency response mechanism has been established to secure smooth and stable oil supply for summer harvest.
Early 2008 witnessed a low-temperature icy rain and snow storm in China. Sinopec immediately initiated the emergency response plan and set up quake-relief supply guarantee and command center at different levels. Employees from the company jointly braved the disaster and ensured the supply of oil to both the market and quake-hit areas. Sinopec refineries maintained full-load operation to increase output so as to supply more oil within a short period. Oil products rolled out in the 1st quarter of 2008 reached 25.98 million tons, an increase of 12.78%. In order to deliver resources smoothly to destinations in extremely difficult transportation conditions, Sinopec strengthened distribution and transportation of oil to ensure enough oil delivered to service stations for sale; adopted a reaction-on-calling mode to distribute oil, evading rush hours; adopting small- amount distribution by vehicles and manpower to provide fueling service to cars on road; guaranteed oil for transportation of vegetables and fresh agriculture food. In face of the disaster, Sinopec employees, workers on the frontline in particular, came to the rescue by all means to help stranded vehicles and people, delivering oil products, food, medicine and warmness, making Sinopec service stations warm "Aid Stations".
After the breakout of the Wenchuan earthquake in Sichuan on May 12th, Sinopec quickly initiated emergency response plan against 1st class devastating earthquake and established a commanding center. Sinopec coordinated more resources to the quake-hit areas to ensure supply, which totaled 105,400 tons in May. At the same time, Sinopec guaranteed supply to railway, army and civil airlines. All kinds of measures are made to meet frontline oil demand such as a green road and priority services for quake-relief transportation vehicles. Service stations are kept operation round the clock every day by arranging station staffs for rescue from other areas, adopting fueling through vehicles and manpower, etc. Gasoline and diesel were provided where disaster recuing equipment headed with no station out of oil and refueling available everywhere. The company stepped up efforts to supply oil to designated areas and customers and met oil demand by such key units as Oriental Steam Turbine Plant, Chengdu Railway Bureau and Rescue Teams from Marine Corps. To solve problems concerning gas supply to disaster-hit areas, Sinopec actively resumed gas production and supply to areas impacted by the quake, ensured gas supply for civil use, CNG gas stations and materials production enterprises while guaranteed safety. Gas supply to people living in disaster-stricken areas is the priority. Sinopec guaranteed the supply of gas where people were resettled.185 resettlements have been supplied with natural gas, providing gas to more than 600,000 people suffering the disaster. Sinopec went all out to orchestrate production of styrene urgently needed in rescue and timely provide 35,000 tons of styrene. Meanwhile, in line with orders from the emergency response commanding center for national safe production, Sinopec immediately organized professional emergency response teams with more than 100 pieces of expert rescue equipment like special jacks, life detection instrument and cutters to support the rescue efforts, which scored fruitful results.
During the Beijing 2008 Olympic Games, Sinopec adhered to the connotation "Fuel to Delivered One Dream" and showed full support to the Olympics. In accordance with the commitment “Contribute Clean Products and Serve the Green Olympics”, Sinopec increased investment to promote clean production in an all-round way by upgrading units and optimizing processes. Yanshan petrochemical invested a total of RMB2.7 billion for 2 years to import foreign advanced technologies, which was applied in refining units with 10 mm tpa capacity. Beijing Standard IV oil products complying with Euro IV emission standard were produced in June, 2007 and cast into Beijing oil product market in March, 2008. Sinopec provided various gasoline and diesel products worth RMB75.8647 million, carpets and curtains worth RMB4.15 million to hosting cities and HK$7.423 million worth of oil products to Hong Kong SAR. Sinopec meticulously designed a sound oil supply plan for the Olympiad and established a high-efficient and orderly supply system. Oil product marketing subsidiaries in hosting cities organized leading group and professionals for Olympics supply to ensure oil products availability. In compliance with Olympic services, Sinopec actively carried out revamping for designated service stations and provided fueling service to Olympic vehicles, including the revamping projects for the 24 designated service stations in Beijing and 24-hour work schedule of Olympic service teams to fulfill the fueling service for various Olympic vehicles. Sinopec Beijing Oil Company selected 120 distribution staff and 56 oil storage tank car from 4 transportation companies to meet the demand for oil by emergency power generators and lighting engines of 27 stadiums and 7 non-competition stadiums. Sinopec Beijing Oil Company adopted such management measures as "Specific Tank for Specific Storage, Specific Management for Specific Account, Specific Vehicles for Specific Use" while arranged 154 staffs as a team to provide assistance in oil products reception, offloading and relevant tasks, put staffs on shift 24-hour to ensure the accuracy and safety of oil supply. During the torch relay process, Sinopec conscientiously made arrangement along the route to provide convenient, efficient and integrated services of fueling, cleaning and water renew. Subsidiaries of Sinopec made concerted efforts to overcome difficulties and successfully developed the special material with lasting, inflame-retardant and recycling properties for spectator chairs in Olympic stadiums in order to complete the production and installation tasks of spectator chairs in the National Stadium (Bird's Nest). The design, manufacture and installation work for the 79,557 chairs was completed at the end of January, 2008. The SBS modified asphalt specially designed and produced by Sinopec for the National Stadium was the first asphalt made in China that was ever applied in the Olympic stadiums.
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