Big news! The country announced the oil and gas production in 2021 and the seven key points of national energy work in 2022

On December 24, the 2022 National Energy Work Conference was held in Beijing. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the conference fully implemented the spirit of the 19th National Congress of the Communist Party of China and the previous plenary sessions of the 19th CPC Central Committee, implemented the deployment of the Central Economic Work Conference and the requirements of the National Development and Reform Work Conference, summarized the work achievements in 2021, analyzed the current situation, and deployed the work tasks for 2022.

01. 2021 Annual Oil and Gas Production

1. Coal, oil and gas production all increased, and energy production and supply capacity continued to improve

We have strengthened the bottom-line guarantee of coal supply, resolutely eliminated unreasonable production restriction measures, and accelerated the release of coal mine production capacity in a classified manner, and coal production has increased steadily. Since December, the national average daily coal production has increased by 2 million tons compared with September, and the national unified dispatching power plant coal reserves have increased by 90 million tons compared with the end of September, exceeding the highest level last year.

We will increase oil and gas exploration and development, and estimate the annual crude oil production to be 199 million tons, rising for three consecutive years, and the natural gas production to be around 206 billion cubic meters, increasing by more than 10 billion cubic meters for five consecutive years. The shale oil production will be 2.4 million tons, the shale gas production will be 23 billion cubic meters, and the coalbed methane utilization will be 7.7 billion cubic meters, continuing to maintain a good growth momentum.

 

 

We strengthened the construction and interconnection of major oil and gas pipeline projects, completed 25 projects including the Qianjiang-Shaoguan section of the South-to-North Gas Pipeline and the West-to-East Gas Pipeline West Section Pressure-Boosting Project, and added 10 million tons of crude oil transportation capacity per year and 40 million cubic meters of natural gas pipeline transportation capacity per day. We fully stocked gas storage facilities before the heating season, and the underground gas storage exceeded the gas injection plan ahead of schedule.

2. Renewable energy installed capacity exceeded 1 billion kilowatts, and energy structure adjustment accelerated

The development of non-fossil energy has reached a new level. The national installed capacity of renewable energy power generation has historically exceeded 1 billion kilowatts. The installed capacity of hydropower and wind power has exceeded 300 million kilowatts. The installed capacity of offshore wind power has jumped to the first place in the world. The annual power generation of new energy has exceeded 1 trillion kilowatt-hours for the first time, continuing to maintain its leading advantage.

New progress has been made in the consumption of clean energy, with the utilization rates of wind power, photovoltaic power and hydropower reaching 96.9%, 97.9% and 97.8% respectively, and the average annual utilization hours of nuclear power exceeding 7,700 hours.

The construction of new power systems has taken new steps forward. The cumulative installed capacity of pumped-storage power stations nationwide has reached 34.79 million kilowatts, the cumulative installed capacity of new energy storage has exceeded 4 million kilowatts, the newly added electricity replacement capacity is approximately 170 billion kilowatt-hours, and the number of electric vehicle charging facilities is expected to be around 2.5 million.

In addition, in 2021, the annual market-based electricity trading volume was about 3.5 trillion kWh, a year-on-year increase of 15.7%, accounting for more than 40% of the total electricity consumption in society. The annual electricity cost saving for users exceeded 65 billion yuan.

02. Seven major priorities for national energy work in 2022

At the 2022 National Energy Work Conference, Zhang Jianhua, Secretary of the Party Committee and Director of the National Energy Administration, announced seven key tasks for energy work next year.

1. Make every effort to ensure energy security

——"We must hold the energy rice bowl in our own hands"

We must continue to play the "ballast stone" role of coal, effectively play the basic regulatory role of coal-fired power, solidly improve the ability to ensure safe power supply, continuously increase the intensity of oil and gas exploration and development, constantly improve the production, supply, storage and sales system, ensure that the people in the northern region have a safe and warm winter, and strengthen energy safety operation forecasting and early warning.

 

 

On October 21 this year, General Secretary Xi Jinping visited Shengli Oilfield and said: We must hold the energy rice bowl in our own hands.

2. Accelerate the development of green and low-carbon energy

——"We must insist on building first and then breaking down, and making overall plans"

Strengthen policy and measure guarantees, and issue the "Implementation Plan for Carbon Peak in the Energy Sector", the "14th Five-Year Plan for a Modern Energy System", the "Opinions on Improving the Institutional Mechanisms and Policy Measures for Green and Low-Carbon Transformation of Energy" and plans for various sub-fields.

Accelerate the implementation of renewable energy substitution actions, promote the development and consumption of wind power and photovoltaic power in the eastern, central and southern regions, actively promote the cluster development of offshore wind power and the development of wind power and photovoltaic power bases in the "Three Norths" region, focus on the construction of wind power and photovoltaic power bases in deserts, Gobi and wastelands, and launch the "Thousands of Villages and Towns Harnessing the Wind Action" and "Thousands of Households Bathing in the Sun Action". Actively and steadily develop hydropower, accelerate the construction of leading reservoir power stations in the southwest region, and approve the start of a number of major engineering projects. Promote the development and utilization of biomass energy in an orderly manner.

Actively develop nuclear power in a safe and orderly manner. It is planned to build four units, namely Fuqing No. 6, Hongyanhe No. 6, Fangchenggang No. 3 and the high-temperature gas-cooled reactor demonstration project, with an additional installed capacity of 3.67 million kilowatts. Under the premise of ensuring safety, orderly promote the approval and construction of nuclear power projects with reliable conditions.

Improve the regulation capacity of the power system. Strengthen the construction of peak-shaving power stations such as pumped storage, promote the flexibility transformation of coal-fired power, promote the development of new energy storage, and optimize the dispatching and operation mode of the power grid. Optimize the national power grid structure. Guide users to participate in market-oriented demand-side response and promote the coordinated development of sources, grids, loads and storage.

Continue to promote rectification of the central ecological and environmental protection inspection. Implement the responsibility of managing environmental protection in the industry, compare with the requirements of the central ecological and environmental protection inspection, learn from past experience, and study and establish a long-term mechanism for problem rectification.

3. Accelerate energy technology innovation

——"The 'heavy weapons' of a great power must and can only be mastered by itself"

Accelerate the advancement of technological equipment research and development. Focus on promoting technological research and development in key areas such as gas turbines, nuclear power, renewable energy, oil and gas, energy storage, and hydrogen energy, and strive to achieve breakthroughs in green and low-carbon cutting-edge technologies.

Vigorously carry out technological and industrial innovation. Focus on building a carbon peak and carbon neutrality standard system in the energy field and promote digital technology innovation. Accelerate the application of 5G and blockchain in the energy field, promote the large-scale market development of new energy storage, and explore new models for the development of hydrogen energy and integrated smart energy services.

 

 

4. Unswervingly deepen institutional and mechanism reform

——“Improve the energy legal system and promote the establishment of an effective competitive market system”

Accelerate the construction of a unified national electricity market system. Establish and improve the coordinated operation, integrated development, standardized and unified trading rules and technical standards of electricity markets at all levels, strengthen the overall coordination and connection of medium- and long-term markets, spot markets, and ancillary service markets, promote the improvement of electricity price transmission mechanisms, and effectively balance electricity supply and demand.

Actively promote market-based electricity transactions. Deepen medium- and long-term electricity transactions and continuously expand the scale of market transactions. Deepen the construction of the electricity spot market and promote the transition of qualified spot pilot projects to long-term operation. Actively promote the transfer of ancillary service costs to the user side, fully tap the flexible adjustment capabilities of both supply and demand sides through market mechanisms, and orderly promote the participation of new energy in market transactions.

Solidly promote the reform of oil and gas pipeline networks. Support and guide the integration of provincial pipeline networks into the national pipeline network in a market-oriented manner, actively promote the construction and interconnection of oil and gas trunk pipelines, promote the separation of transportation and sales of provincial pipeline network operators, and encourage users to independently choose gas supply routes and suppliers.

Continue to deepen the reform of "delegating power, deregulating and improving services". Promote the reform of the administrative approval system and promote the full coverage of the "separation of licenses and certificates" reform in the energy field. Optimize enterprise-related services, clear bottlenecks, and create a good environment for the development of new industries, new formats and new models such as distributed power generation, local market-based transactions, microgrids, and integrated energy services.

Continue to promote the construction of energy rule of law. Accelerate the formulation of the Energy Law, revise the Electricity Law, Coal Law and Renewable Energy Law, and promote the formulation of oil reserve regulations.

5. Improve energy regulation efficiency

——“Ensure fair competition through fair supervision”

Optimize the business environment for electricity consumption. Continue to improve the service level of "obtaining electricity" and effectively improve the satisfaction and sense of gain of electricity consumption.

Strengthen market supervision in key areas. Deepen supervision of power grids and oil and gas pipelines, increase supervision in areas such as fair opening, operation and dispatch, price and cost, contract performance, power grid purchasing, and unplanned shutdown of units, and strive to create a market environment of fair competition.

Strengthen power safety supervision. Build a power safety indicator system, establish a safety audit work mechanism, pilot the construction of power safety production standardization and safety education and training system, strengthen special supervision of team safety and new energy safety, and issue the "Power Reliability Management Measures (Interim)".

Strengthen the construction of the supervision system. Vigorously promote the "double random, one public" supervision model, promote the construction of a new supervision mechanism based on credit, and carry out credit supervision pilot projects. Strengthen administrative law enforcement of energy supervision, run the 12398 energy supervision hotline well, open up new channels for complaints and reports such as the Internet, and effectively increase the intensity of investigation and punishment of illegal and irregular behaviors.

6. Expand international energy cooperation in all directions

——“Steady increase my voice and influence in global energy governance”

Make overall plans for energy cooperation between major countries. Actively promote the construction and operation of the China-Russia East Line Natural Gas Pipeline and the China-Russia Crude Oil Pipeline, build the four nuclear power units of Tianwan and Xudabao with high quality and high standards, and promote the establishment of a closer China-Russia energy cooperation partnership. Implement the important consensus reached by the heads of state of China and the United States via video conference, and promote dialogue and exchanges between the two sides in the fields of energy security, natural gas and new energy. Continue to deepen practical China-EU energy cooperation, rely on existing dialogue mechanisms and cooperation platforms, and promote policy exchanges and the implementation of innovative cooperation demonstration projects between enterprises.

Promote high-quality energy cooperation along the Belt and Road. Deepen the interconnection of energy infrastructure and continue to promote power interconnection with neighboring countries. Focus on key countries, key areas, and key projects, and continuously improve the level of cooperation. Steadily expand clean energy cooperation such as wind power, photovoltaics, nuclear power, and natural gas.

Carefully build an international cooperation platform. Using the "Belt and Road" energy cooperation partnership and the International Energy Transformation Forum as carriers, actively promote the implementation of the China-ASEAN Clean Energy Center and the China-Arab League Energy Cooperation Sub-Center, and deeply participate in multilateral mechanisms such as the United Nations, G20, IEA, IRENA, BRICS, and the Shanghai Cooperation Organization.

7. Solidly promote comprehensive and strict party governance

——"To do a good job in energy work, we must give full play to the political guidance and political guarantee role of comprehensive and strict party governance."

We must fully understand the importance of strengthening comprehensive and strict governance of the Party, thoroughly implement the spirit of the Sixth Plenary Session of the 19th Central Commission for Discipline Inspection, earnestly implement all decisions and arrangements, and strive to build the Party stronger and more powerful.

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