business

Products Marketing and Service

Natural Gas

In 2018, the company sold 40.4 billion cubic meters of natural gas, an increase of 18.6%, among which 27.58 billion cubic meters of natural gas were produced by Sinopec, an increase of 7.2%.

Highlighting growth in both quantity and efficiency and constantly optimizing the market structure, we diversified resource supplies and filled in regional supply gap by purchasing from LNG spot market and other domestic suppliers. We allocated imported LNG and domestic gas production based on market conditions, optimized gas structure of pipeline gas users, and increased liquids sales. We developed high-quality users in sectors like town gas, industries and power generation, sped up end-user business development, and developed 87 new pipeline users and 43 liquids users. We strengthened gas supply, optimized peak-shaving demand, and supplied 11.7 billion cubic meters of gas, achieving stable supply to key users in key areas for important periods.

Refined Oil Products and Non-fuel Business

In 2018, the total sales volume of oil products was 198 million tonnes. Domestic refined oil product sales volume was 180 million tonnes, an increase of 1.4%. Non-fuel business increased by 29%.

Refined oil product marketing and service. In different regions, we adopted differentiated means to promote both fuel and non-fuel business and point-to-point competition, and put in place incentive policies and urged the government to curb illicit business practices. Direct distribution operation adopted flexible pricing, vigorously developing strategic customers and end users. We coordinated the "two markets" at home and abroad, deepened cooperation between production and marketing subsidiaries, optimized export structure, and enhanced export capacity so as to create a favorable environment for expanding sales and increasing efficiency. We well managed two resources and optimized supplier structure. We further promoted logistic optimization and substantially reduced freight and incidental charges.

Non-fuel business. We adhered to the development mode of “brand+capital+products+services”, promoted further integration of fuel and non-fuel business, and drove the coordinated development of multiple business formats. We expanded the sales of our own brands and key products and strived to improve the efficiency of convenience stores. We sped up the development of new formats such as car wash, fast food, insurance, tourism and store-within-store and actively built integrated service, automobile service and community stores. We promoted the O2O business, and Wechat account follows continued to grow. Focusing on the 10th anniversary of Easy Joy, we formulated "Easy to Enjoy Festival", launch an upgraded version of convenience stores.

Fuel Oil

In 2018 the total sales volume of fuel oil was 21.91 million tonnes.

The profitability of domestic trade continued to grow. We strengthened overall management, made well-informed judgment on market conditions, implemented target-oriented marketing, and effectively avoided the risk of falling oil prices. Leveraging the advantages of business integration, we achieved rapid growth in scale. We are promoting the incorporation of the of inland bunker fuel standards into the national standards, and the specialized management of light bunker fuel. Sales volume for the year reached 3.35 million tonnes.

Economies of scale grew significantly for bonded business. We were an active player in the construction of coastal free trade zones, and established a global ship refueling business center in Zhejiang (Zhoushan) free trade zone. The annual sales volume of blended products in China reached 5.26 million tonnes, an increase of 30%, and accounted for a market share of 36%, up by 3 percentage points.

Other Refined Products

For the first time, the total sales volume of refined products marketed through Sinopec channels exceeded 40 million tonnes, an increase of 9%, and the market share continued to maintain the leading position in China. The company strengthened the integration of production, marketing and research. Asphalt customized service was welcomed by key projects like the new Beijing airport and 2022 Winter Olympic Games. The total sales volume of lubricating oil increased by 23%. The company continued to cooperate with high-end manufacturers, supported space missions, started CFM bench test of engine oil for jet planes, won the bid for "Hualong 1" nuclear power plant project, and sales volume of high-end products increased by 17%. The company won 66 international certifications in 2018. 69 new products were developed and 86 patents were applied. The ASTM analytical method standards of lubricating oil, established under the leadership of the company, passed the project review.

Chemical Products

In 2018, the total sales volume of chemical products reached 86.6 million tonnes, an increase of 10.32%, among which the self-marketed volume increased by 10.4%. The company continued to deepen customer-by-customer targeted marketing, gave full play to the 95388 customer service hotline, established service brand, and further improved customer satisfaction. The company further improved the regional distribution of marketing, adding new outlets in Hainan, Guangxi and Guizhou. The company prepared for startup of the Russian office and improved the layout of domestic and international outlets. Joint ventures in Ningbo and Qingdao operated well. The company sought innovative e-commerce business model, enabling efficient transactions, convenient payment, intelligent logistics, intelligent services and the integration of every link along the value chain. The petrochemical e-commerce platform officially launched on July 1, 2018. The company steadily promoted futures business, improved market analysis, position-taking methods as well as risk prevention and control system. The total sales volume of catalyst products continuously increased, and new breakthroughs were made in key markets. Domestic catalyst sales grew by 29%, and customer satisfaction continued to improve.