Taking advantage of a well-organized marketing network for refined products and a centralized marketing system for chemicals, CNPC has established an enhanced and efficiently operated marketing network nationwide with retail outlets and service stations set up across the country to providing services to more than two million customers on a daily basis.
Given the diversity of competitors and supply channels and inspired by the business philosophy of "Premium Service for People", we are committed to providing quality products and premium services to our customers through a conversion of growth model for CNPC's marketing teams.
CNPC's refined products sales volume and market share has increased steadily in recent years, taking up 42.8% of the domestic market. In 2010, we consolidated our position in the developed markets, made active efforts to expand high-end market and increased terminal sales, achieving simultaneous growth in sales, market share and profitability. Sales of refined products exceeded 100 million metric tons, up 15.5% year-on-year. Retail sales exceeded 70 million metric tons, an increase of 19.6% compared with previous year. The proportion of retail sales was increased by 2.1%, and our share in the domestic refined products market was increased by 1.8% year-on-year.
As the marketing structure has continuously improved, our brand value and market recognition have also grown. Through the implementation of the localization strategy, market share of "Kunlun" lube oil has been growing every year, thanks to our advantages in resources, R&D and rigorous quality management, compatibility with local requirements, auto and road conditions and domestic customer needs.
 Service Stations
CNPC endeavors to improve the construction quality and the service level of service stations, focusing primarily on revenues from large-scale service stations and the accessibility of small- and medium-sized services stations. By the end of 2010, CNPC operated 17,996 service stations in China with an average daily throughput per individual station of up to 10 metric tons.
CNPC is planning to explore new business opportunities in addition to filling services, that is, to convert from a purely oil products retailer to an operator of a comprehensive service network of gas stations within a timeframe of five to ten years. Initially, we will launch non-oil operations, primarily in form of convenience stores, in large- to medium-sized cities in developed regions, in provincial capitals, and at service stations with a capacity of 3,000 metric tons or more. In 2008, we launched the "uSmile" brand for the integrated operation and management of our convenience shops. Using the smile design shows our service philosophy and quality in the sales business. By the end of 2009, our 2,100 service stations had been transformed and showed a new attractive appearance to customers.
In 2010, CNPC issued new design and construction standards for service stations and oil tanks. In addition, more than 5 million CNPC Kunlun fuel cards can now be used in our 16,050 service stations nationwide, giving the card owners quick and convenient access to refueling services.
Trading
CNPC became a more active player in the global oil market through building a relatively competitive trading mechanism, and effectively playing its regulating and safeguarding role.
PetroChina International (China National United Oil Corporation), a subsidiary of CNPC, is responsible for CNPC's international trading activities.
PetroChina International has nine domestic branches and seven overseas branches in North American, Europe, Central Asia and Southeast Asia. The company deals with international trade in crude oil and 78 refined and chemical products to and from 43 countries and regions by way of commission agency, self-support import/export, transit and consigned processing for export. The company is starting to make its presence felt in the international crude and refined oil futures market. In 2009, we successfully acquired Singapore Petroleum Company and signed the master agreement with Nippon Oil Corporation on the Osaka refinery project and set the date of handover.
During its operations, PetroChina International has carried out successfully international transit business in crude (Minas, Basra and Oman), gasoline and fuel oil, as well as other businesses such as imported materials processing, oil products exchange, insurance agency and hedging services. Overseas wholesale of refined oil is carried out by means of tank rental and blending. PetroChina International also trades gasoline in Platts Assessment Window and actively makes overseas investments by acquiring and merging oil depots and filling stations.
In 2010, we realized trade volume of 195 million tons of crude, refined products, chemicals, and natural gas, worth USD 110.5 billion, up 27.5% and 67.6% over 2009, respectively. In 2010, the shipping business increased in scale, with traffic up 23% year-on-year. We expanded the size of our fleet by means of “shipbuilding + time charter”. Ships were built in joint ventures with international petroleum shipping companies from Venezuela and Russia. |