CNPC records fewer accidents in 2006

02 March 2007 12:45 [Source: ICIS news]

SINGAPORE (ICIS news)--China National Petroleum Corp (CNPC) spent yuan (CNY) 17.5bn ($2.3bn) on environment protection measures in 2006 and reduced the number of accidents to 163 from 174 a year ago, the energy major said.

CNPC is the parent of Jilin Petrochemical which was responsible for the benzene spill in Songhua River when its aniline unit exploded in November 2005.

It polluted the drinking water for millions of people in northeast China and Russia.

CNPC was also responsible for a natural gas explosion in Chongqing in 2003 which killed more than 200 people.

However, it recorded 4.1% fewer accidental deaths in 2006 from a year earlier while its economic losses were down 47.8%, the company said in its first annual social responsibility report.

But 2006 was marred by a natural gas leak in Chongqing on 25 March and six serious accidents which led to 26 deaths, CNPC said.

Several fires also happened at its subsidiary Lanzhou Petrochemical in 2006 and early 2007.

The company expected to spend CNY13.7bn in 2007 on environment protection, safety measures, developing cleaner production and renewable energy, senior company officials was quoted as saying in local media reports.

In 2006, CNPC also reduced the level of oil pollution in water by 4.6% to 1,399 tonnes from a year ago and its chemical oxygen demand (COD) was down 5.4% to 28,600 tonnes.

The company upgraded its Dalian refinery and reduced around 20,000 tonnes of sulphur dioxide emissions. It completed a desalination unit in Dalian, Liaoning province, which can process 500 tonnes/day of seawater in 2006.

CNPC aims to increase the use of desalinated and recycled water to 20m tonnes/year in the 11^th five-year period (2006-2010).

It cut the amount of resources used by 37% in the 10^th five-year period and it planned to focus on renewable energy.

The company’s fuel ethanol in Jilin reached 500,000 tonnes/year and it also signed agreements with Sichuan and Yunnan provincial governments to develop biofuel feedstock.

Its subsidiary Liaoyang Petrochemical was to complete a Clean Development Mechanism (CDM) project which would reduce nitrous oxide emissions by 10m tonnes/year in carbon equivalents.

On production, subsidiary Dalian Petrochemical became China’s largest refiner after its capacity was raised to more than 20m tonnes/year last year.

CNPC’s chemical output was up 1.6% to 13.6m tonnes in 2006 from a year ago while its ethylene production rose 9.5% to 2.07m tonnes.

The company also brought on stream new crackers at Jilin Petrochemical and Lanzhou Petrochemical. Its 10m tonne/year refinery and 1m tonne/year cracker project at Dushanzi Petrochemical is still under construction.

By end-2006, CNPC had 1.59m employees with assets worth nearly CNY1,400bn including 16 refining and chemical plants.

Its sales rose 16.2% to CNY806bn.

($1=CNY7.74)

By: Florence Tan
+65 6780 4359

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