Volume 6, Chapter 61, Ang Xiao towering
"People's Minister Li, how long will the agreement between China National Petroleum Corporation and our Qindu Petrochemical be signed depends on how big the breakthrough we have in the Kazakhstan project and how much we have gained." Zhong Guangbiao couldn't help but explain.
Those present immediately understood, and Wang Yunxiang also asked: "Guangbiao, what do you mean is that as long as we succeed in the Akjiubin project, then the crude oil supply contract of CNPC to Qindu Petrochemical will be valid for a long time, and will not be affected by the expansion and growth of Qindu Petrochemical's refining energy?"
"It's basically what it means." Zhong Guangbiao did not hide it. "With the separation of Sinopec next year, CNOOC will also have its own portal. CNOOC will hand over some domestic oil fields to Sinopec, and some of Sinopec's refining and chemical companies will also hand over to Sinopec. This means that the domestic market will have a separatist situation from crude oil production to refining. CNOOC and our Changhe Energy companies."
It is imperative that the split between China National Petroleum and Chemical Corporation is determined long ago, but the specific plan involves the interests of each company, so it is really necessary to play a game of real swords and guns.
Everyone wants to keep high-yield and stable oil fields and huge potential in their own hands, throw away those oil fields that have entered the decay period and become high-cost oil fields. At the same time, they want to take in the refining companies with strong technical capabilities and good geographical locations. Therefore, even if the central government takes the lead in this division, it is inevitable that the verbal and tit-for-tat is not possible, and it cannot be finalized in less than a year or two.
"And from the current domestic demand for petrochemical products, the domestic crude oil self-sufficiency rate will only become lower and lower in the next 20 years, and the refining and chemical production capacity will become larger and larger. The demand for imported crude oil from abroad will also grow day by day, and the growth rate may even exceed our imagination. Currently, we only have Wuyang Petrochemical and Qindu Petrochemical. Wuyang Petrochemical's refining capacity is about 4 million tons, while Qindu Refining and Chemical Refining capacity is about 2.5 million tons. Our current crude oil production of Changhe Petroleum can maintain an annual output of about 4.5 million tons. Our expectation is to increase the production capacity to 7 million tons by the end of this century and to more than 10 million tons by 2005. Of course, this is the earliest plan set and does not include our share of oil rights overseas."
Everyone knows the situation introduced by Zhong Guangbiao.
Changhe Petroleum’s crude oil production capacity can only barely meet the needs of Wuyang Petrochemical. The problem is that Wuyang Petrochemical is now afraid to continue to expand its production capacity. Even though the domestic petrochemical market demand for various types of petrochemical products is showing a surge, Qindu Petrochemical is completely dependent on the crude oil supply of PetroChina. Changhe Petroleum can only provide Qindu Petrochemical with less than 500,000 tons of crude oil supply.
Originally, Qindu Petrochemical's production capacity expansion plan had already existed, but if PetroChina had not guaranteed crude oil supply, this expansion would have been wasted.
It turned out that Qindu Petrochemical had talked with CNPC for many rounds. At that time, Qindu Petrochemical had not yet belonged to Changhe Energy Group, but CNPC had never let go. Now that Qindu Petrochemical was included in Changhe Energy Group, the negotiations fell into a state of stagnation until Changhe Energy suddenly entered Central Asia and bid for the Akjiubin project.
"In other words, in the future, we need to obtain some crude oil from the Akjiubin project to exchange for domestic Petroleum Corporation to supply oil to Qindu Petrochemical?" Wang Yunxiang asked again.
"It's basically what it means." Zhong Guangbiao nodded and glanced at Sha Zhengyang. "Of course, it may also include some other conditions, such as cooperating with us in Central Asia, but that may be the next issue."
"Although it is the next problem, we estimate that PetroChina will still intervene in advance. Once we obtain the Akjiubin project, we may soon face the cooperation requirements of PetroChina." Sha Zhengyang said calmly, as if he was prepared for this situation.
Li Ming thought, "It seems that we have to depend on our own strength. Only with our own strength can we have the confidence, and we can be able to speak tough words when negotiating with China National Petroleum Corporation, otherwise it will be useless."
"Governor Li is right. If you don't have the strength, why can you supply crude oil to you for nothing? Everyone can see that with the continuous acceleration of domestic economic development, even if there are occasional twists and turns, the general trend will not change. The demand for such basic petrochemical products will only continue to rise, and the growth rate will not even make the domestic supply unable to keep up. In the next step, PetroChina will also have its own refining and chemical companies, and can also build its own refining and chemical companies. Why should it provide you with it and make you make money?"
Sha Zhengyang's words hit the nail on the head.
"Well, I understand, Zhengyang, you continue." Li Ming nodded with a smile, signaling Sha Zhengyang to continue reporting.
"What we imagined is to promote the construction of China-Kazakhstan oil and gas pipelines between the two countries, which are oil and gas pipelines, rather than pure crude oil pipelines." Sha Zhengyang strengthened his tone, "On this point, we are consistent with PetroChina's view, that is, China's demand for oil and natural gas imports in Central Asia will be huge in the future. The earlier it is planned and constructed, the more beneficial it is."
"Kenkiak's crude oil can only be transported by railway at present. On the one hand, the transportation capacity is limited, and on the other hand, the cost is high, which is not cost-effective. If transported by pipelines, it will greatly reduce the transportation cost,..."
"..., we have considered that the oil and gas pipeline from Atlau to Kenkiyak will have two functions in the future. At present, it may be exported from Kenkiyak to the west, so that the operating conditions of Akjiubin Oil Company can be improved in the near future. In the long run, Atlau's position is very important, and it also contradicts the North Caspian Sea oil and gas resource-rich area. The oil and gas resources in this area may be developed in the future through Atlau, a port and pipeline hub. Therefore, in the long run, the construction of this pipeline will help us deepen our efforts in the Caspian Sea region along the Kazakhstan and lay a solid foundation for the next step of development...."
Sha Zhengyang's introduction is already in it with some slightly exaggerated colors. The Akjiubin project has not been finalized yet, but the next plan has been rolled out, which seems a bit too ambitious.
However, Sha Zhengyang knew that if he did not make appropriate modifications to his words, the provincial leaders would probably not be satisfied or worried.
The investment is estimated to exceed US$310 million in the initial investment alone, of which about US$5 million is expected to be in operation. The second step is the construction of the Orsk oil refinery and the pipeline to Atlau. This is another huge investment that cannot be predicted yet. Even if the Export-Import Bank and JP Morgan are willing to provide financing, it is still a heavy pressure for Hanchuan Province.
This pressure is mainly due to the many uncertainties about the benefits that this project can achieve in the future, but it is necessary to take this step.
If Sha Zhengyang does not take the momentum more, his attitude is firmer, and his future is brighter, Sha Zhengyang is really worried that these leaders will suddenly give up.
"In addition, I also want to report on some situations that have not been directly connected with our Akjiubin project for reference by leaders." This is also what You Wangang and Sha Zhengyang had discussed before, "is about the agricultural resource development, road infrastructure and municipal infrastructure construction in Akjiubin, Akjiubin, Kazakhstan..."
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At the end of the meeting, the two main leaders left first, and Li Ming had to discuss some work with You Wangang and Zhong Guangbiao, so Sha Zhengyang left first.
"Zhengyang, come to my place to sit?" When Tian Li went downstairs, he took the initiative to greet Sha Zhengyang.
"Secretary General Tian, it won't affect your work, right?" Sha Zhengyang said with a smile, but his pace has already kept up.
Tian Li's office was a little messy, probably related to the nature of his work. The desk was divided into several categories and placed on it. It was estimated that it had to wait for Tian Li to read it and then distribute it to other leaders.
In front of Tian Li, Sha Zhengyang acted calmly and had two contacts. Tian Li had a good impression of him, so he was also relaxed.
"This trip to Kazakhstan is very hard, right?" Although Tian Li is already the secretary-general of the provincial party committee, he came from the provincial government and is still very concerned about the work of the government.
"The main reason is that the living and eating habits are different. At first, they are a little annoyed, but later they are better. Akjiubin's conditions are much worse than Almaty. Later, we arrived in Almaty." Sha Zhengyang nodded, "Talking with Kazakhstan and Americans, in short, it is communication and negotiation every day. Some details cannot be said to be full, but if you say it is too empty, people will definitely think that we are not sincere, so it is too difficult to master this time, but we will have experience next time."
"The results will come out in June. I am very confident in how you look? Do you still have to stay there next?" Tian Li asked with a smile.
"Secretary General Tian, if you don't have confidence, you have to pretend to be confident. What's more, we are indeed quite sure. Texagu and Amoko are not in line with the interests of Kazakhstan. Besides, some of the conditions we listed for restoring the oil field are more convincing." Sha Zhengyang smiled, "If the bidding is successful, I may have to stay for a while. I will probably not be able to come back after the entire team is formed."
Sha Zhengyang was not very clear about why Tian Li had such a good impression of him. He probably might have something to do with Su Lunkang, but it should not be the main one.
Sha Zhengyang guessed correctly. Tian Li had a very good impression of Sha Zhengyang, which originated from several aspects. First, Su Lunkang's recommendation, second, the impression he was exposed to when he was in Zhenyang County, third, this project touched him deeply, and even Zhou Yuanwang gave him a high evaluation. These performances have left a very deep impression on Sha Zhengyang in the minds of the Zhou kings, which is even more important than immediately promoting the first level.
Chapter completed!