Cai Xiyou--Senior Vice president of Sinopec Group

Summary:

First, China's crude oil trade. Global economic growth will push oil consumption higher, but consumption growth will slow down. Given China's increasing share in global oil consumption, Sinopec will intensify domestic prospecting and development, increase the share of long-term contracts on crude oil import, promote the refinery of inferior crude oil, cut crude oil transportation cost, expand the scale of oil trade, step up international cooperation, and pursue a green and low carbon development strategy in order to ensure its own oil supply and contribute to China's energy security.

Second, opportunities and challenges in the green and low carbon development of Sinopec. Green and low carbon development has brought pressure and unprecedented opportunities for China's petrochemical industry. Clean energy represents a green and low carbon future. The petroleum and petrochemical industry has a special advantage in developing natural gas, shale gas, coal-bed gas, electricity, and biofuel. Clean energy is sure to create ample opportunity for growth.

Third, Sinpec's approaches and measures for green and low carbon development. With a commitment to green development, China's petroleum and petrochemical industry will introduce policies and targets in resources conservation, environmental friendliness, recognition and satisfaction of the general public etc. Sinopec will promote energy conservation and efficiency, carry out clean production, develop low carbon products, retire inefficient facilities and technologies, adjust its industrial structure, set an example as a low carbon business, spread mature technologies in energy conservation and emission reduction, and press ahead with major energy conservation projects. We will strengthen technological exchanges and cooperation with our Chinese and foreign partners, develop green and low carbon technologies, and promote the research and utilization of non-scale carbon resources.

As a large Chinese energy and petrochemical corporation, Sinopec will champion green and low carbon development in China. While expanding overseas, it will take concrete steps in fulfilling the economic, political and social responsibilities as a state-owned enterprise. It will step up efforts to a resources-conserving and environment-friendly corporation, and contribute to the building of a beautiful China with blue shy,green fields and clean water.