For China National Petroleum Corporation (CNPC), the country's largest oil and gas producer, ensuring stable and safe energy supply to fuel the growth of the Chinese economy is its core social responsibility.

The company in March released its 2007 corporate social responsibility (CSR) report, its second CSR report after the one in 2006. Comprising five chapters - energy supply, safety and environment, career development, public welfare, and features - the report stresses energy security.

CNPC increased its crude production by 1 million tons and natural gas output by 10 billion cubic meters in 2007. "Last year we added crude manufacturing capacity of 13.66 million tons, as well as natural gas production capacity of 10.3 billion cubic meters," Li Runsheng, assistant president of CNPC, tells China Business Weekly.

In the upstream sector of oil and gas exploration, last year the company invested around 100 billion yuan to step up oil exploration. "New geological reserves of 830 million tons of oil equivalent were found last year, and natural gas reserves of 429.4 billion cubic meters," Li says.

In 2007, CNPC announced its biggest oil discovery in 30 years. Jidong Nanpu Oilfield in Bohai Bay has combined proven, probable and possible reserves of as much as 1.18 billion tons of oil equivalent.

"Priority must be given to the development of new oilfields as well as stabilization of output of old ones in order to meet China's rising demand for the energy," Li says.

CNPC also quickened its pace in the downstream sector of oil refining and petrochemical production. This year the expected operation of four refineries, each with a processing capacity of 10 million tons or more, will greatly boost the growth of the company.

The four refineries are located in Dalian, Fushun, Dushanzi and Guangxi. The first three are being expanded and the last is a new one being built.

The company in 2007 processed 121.73 million tons of crude oil, up 5.1 percent over a year earlier. Facing fuel shortages in East and South China in the fourth quarter of last year, CNPC has taken many measures to increase its supply.

Facing high crude prices on the international market and government-controlled refined oil prices, eastern and southern regions began to face shortages in fuel such as gasoline and diesel from November. To ensure supply, CNPC has improved oil distribution and increased oil imports.

In the fourth quarter of last year, the company saw an increase of 6.9 percent growth in its oil processing.

Clean energy

In line with the government's efforts to use more clean energy, CNPC has put more focus on the development of natural gas. The company's natural gas production has seen 20 percent growth in three consecutive years.

The company has started the construction of the second West- to-East natural gas pipeline, which will mainly carry natural gas from Turkmenistan and China's Xinjiang Uygur autonomous region to the Yangtze and Pearl River deltas, the country's two most developed regions.

Construction of the 9,102 km gas pipeline, which consists of a main line and eight sub-lines, will regain an investment of 142.2 billion yuan.

With a designed gas transmission capacity of 30 billion cubic meters per year, the pipeline would traverse 12 provinces and autonomous regions before reaching the eastern municipality of Shanghai and southern Guangdong province.

The company's first massive project to pipe natural gas from the West to East China was put into commercial operation at the end of 2004. It ran from the Tarim Basin of Xinjiang to Shanghai.

With a targeted annual gas transmission capacity of 12 billion cubic meters, the project has now ensured a stable gas supply for three years.

It has changed the energy structure of Shanghai, China's industrial hub, which earlier relied on coal as its main energy.

Statistics show that in the downstream areas of the project, coal consumption was reduced by over 30 million tons and pollutant emissions by 1.4 million tons.

China has set a target of raising the proportion of natural gas in its total energy consumption to 5.3 percent in 2010 from 2.8 percent in 2005, amid efforts to curb pollution. The two massive pipelines will contribute much in attaining this target.

CNPC's business on new energy also covers coalbed methane, oil shale, oil sands and renewable energy such as wind and solar power, bio- and geothermal energy. It will invest 10 billion yuan in building facilities for new energy production by 2010.

The company will also take advantage of its resources, technology and funds to closely follow the latest developments in hydrogen energy and natural gas hydrate.