National Policy
National Energy Board: to encourage foreign companies to participate in the development of unconventional oil and gas resources


Source: China Economic Net


December 3, 2012, attended by Liu Qi, deputy director of the the Fourth China Overseas Investment Fair and the First Energy International Investment Cooperation Forum and delivered a speech.

China Economic Net Beijing December 5 - December 3, Liu Qi, Deputy Secretary of the National Energy Board in the 4th China Overseas Investment Fair and the First Energy International Investment Cooperation Forum, China encourages foreign oil in a cooperative manner, exploration and development of natural gas in shale gas and unconventional oil and gas exploration and development. The following is the transcript:

Distinguished guests, ladies and gentlemen:

China Overseas Investment Fair has been held for the third, and the widespread impact at home and abroad, to build a professional platform for Chinese enterprises to go, and provides an important window for the countries in the world to introduce the Chinese capital. The current Fair for the first time set up energy forums, take the opportunity to cooperation on energy development overview and energy foreign investment as an introduction, and to share.
China's energy development, generally speaking, there are basically five characteristics:

First, China has become the world's major energy producing countries. 2011, China's total primary energy production reached 3.18 billion tons of standard coal, ranking first in the world, including raw coal production of 35.2 million tons, 203 million tons of crude oil and 102.7 billion cubic meters of natural gas, respectively, ranking first in the world, fifth and six. The installed power generating capacity has exceeded 1.1 billion kilowatts. Energy self-sufficiency rate has remained at around 90%, China mainly relies on its own strength, and to protect the energy needs of a population of 1.3 billion.

Second, energy conservation, improved energy efficiency and significant progress. The past 6 years, the cumulative unit of GDP energy consumption decreased by 21%, equivalent to 1.53 billion tons of carbon dioxide emissions. In high energy-consuming industries such as electric power, iron and steel, cement, chemical, speed up technological progress, the elimination of backward production capacity, promote industrial upgrading and energy saving. Currently, 300,000 kilowatts and above thermal power units accounted for 70% or more per kWh of thermal power generation standard coal consumption dropped to 308 grams, to reach the level of developed countries in the world.

Third, the rapid development of renewable energy and new energy. China's hydropower installed capacity has more than 250 million kilowatts, ranking first in the world. Nuclear units 15 units put into operation, the installed capacity of 12.5 million kilowatts; nuclear units under construction 26 units under construction in the world. Wind power installed capacity of more than 55 million kilowatts, to become the world's wind TVU country. The strong growth of solar power, the end of this year will exceed 7 million kilowatts installed capacity.

Fourth, energy technology and equipment level continues to increase. Built in the oil and gas exploration and development technology system, complex block exploration and development of technology to improve the recovery factor of oil and gas fields is an international leader with a million tons refinery and one million tons of ethylene plant design and manufacturing capabilities. The mining mechanization level reached more than 60%, and 600 tons of mechanized mining underground outfit to comprehensively promote. Million kilowatts ultra supercritical coal-fired units, 800,000 kilowatts turbine group to achieve their own design and manufacturing. Wind power and solar photovoltaic power generation to form a complete R & D and manufacturing chain.

Fifth, the energy level of universal service has improved significantly. In 2011, China's per capita primary energy consumption reached 2.6 tons of standard coal per capita electricity consumption of 3500 kwh. By strengthening the power grids of the rural areas in the past 10 years, we have to improve the reliability of electricity in rural residents, but also to solve the problem of electricity of more than 35 million people without electricity.
China is still in the industrialization and urbanization accelerate the development stage, the face of the grim situation of tight resource constraints, and serious environmental pollution, ecosystem degradation, China will vigorously promote energy production and consumption revolution, control of total energy consumption, strengthen energy saving support low-carbon industries and new energy, renewable energy development, promote the efficient and clean use of traditional fossil fuels, the strengthening of institutional and technological innovation, to raise the overall energy development, processing, conversion and use of the efficiency of the whole process to establish a secure, stable, economic, clean modern energy industry system to ensure national energy security and ecological security.

For over 30 years, adhere to the basic state policy of reform and opening up in China, also has made some achievements in this context, foreign investment and cooperation in China's energy.
One is to establish a dialogue and exchange mechanisms. China is an active participant in the international energy cooperation. With the United States, Russia, Central Asia, the European Union, Arab and other countries and regions, the establishment of more than 60 bilateral mechanisms, kept in close contact with the International Energy Agency. Through bilateral and multilateral dialogue and exchanges, enhance understanding and mutual trust, and build a platform for cooperation.

The second is to promote the bilateral economic and trade cooperation. In China and many countries in the economic and trade cooperation, energy cooperation has become the most important, most active, most potential areas of close bilateral economic and trade exchanges, complementary advantages, to promote friendly relations between countries played an important role. The connection between China and Turkmenistan, Uzbekistan, Kazakhstan, the four countries of the Central Asia gas pipeline, known as the modern "Energy Silk Road", called China a model of mutual benefit and win-win cooperation with Central Asian countries. China-Russia energy cooperation is an important content of the bilateral strategic cooperative partnership is also the focus of bilateral economic and trade cooperation. China's cooperation with Venezuela, Brazil, Australia, Saudi Arabia, Sudan, Angola and other countries, the energy also occupies an important position.

The third is to promote the common development of all countries. All along, the Chinese enterprises to adhere to the business principle of equality and mutual benefit cooperation with each other. At the same time to pursue their own development, actively fulfill their social responsibilities, to promote local economic development and improve people's livelihood. China in Turkmenistan Amu Darya natural gas project, as well as gas cooperation project in Nanyueluotan, investment of over 2.5 billion U.S. dollars, and created more than 10,000 jobs and invested more than 100 million U.S. dollars to help improve local health care, maternal and child health , the disabled and orphans welfare and other public facilities. The second phase of China and Kazakhstan-Kazakhstan natural gas pipeline construction, abundant natural gas resources in the western Kazakh transport to the south for the life of the local residents benefit along more than 10,000 villages and a population of over 500 million, driven by the southern Kazakh economic and social development in the region. Chinese energy companies to comply with local laws and regulations, and respect local religious beliefs and customs, and establish a good corporate image.

To maintain global energy security. At present, Chinese enterprises in the Middle East, Central Asia, North Africa, South America and other regions, with more than 40 countries of the oil and gas exploration and development cooperation. The rights and interests of Chinese enterprises overseas oil equivalent exceeded 90 million tons in 2011, operating production over 150 million tons, is not only conducive to maintaining the security of its energy, while increasing global market supply, promote the diversification of supply channels, the maintenance of global energy markets and price stability played an important role.
It can be said that foreign investment in China's energy cooperation is not only conducive to the country's economic and social development, but also made a contribution to the host country's economic and social development and global energy security.

The new concept of energy security as one of the major economies in the world and the largest developing country, China will adhere to the mutually beneficial cooperation, diversified development and coordinated guarantee, on the basis of mutual benefit and win-win and actively carry out international energy cooperation, encourage and support Chinese enterprises foreign investment and cooperation.

(A) to strengthen dialogue and exchange, to create a good environment. China will make full use of multilateral and bilateral cooperation mechanism, active use of bilateral and multilateral meetings between high-level visits and the government, to strengthen dialogue and exchanges with relevant countries to enhance communication and understanding, enhance mutual political trust, through the establishment of an inter-governmental framework agreement and a memorandum of cooperation for enterprises to take out to provide effective protection.

(B) strengthening sector coordination, promote pragmatic cooperation. National Development and Reform Commission, the National Energy Board will strengthen coordination with other departments of foreign affairs, taxation, business and financial, and improve service levels. Speed up overseas energy investment project approval, and simplify the approval process and perfect the filing mechanism. Establish and improve the international energy information platform, strengthen strategic research plan and global macro guidance to the prevention and control of investment risk. Strengthen the policy of convergence with the credit policy and the energy industry, innovative financial products and services, facilitate energy investment diversification.

(C) to fulfill their social responsibility to enhance the level of cooperation. Chinese enterprises in overseas investment and cooperation, shall abide by the local laws and regulations, and respect local religious beliefs and customs. Construction projects, attention should be paid to the protection of the ecological environment, and help local development of education, health care, infrastructure, personnel training and other livelihood projects, and the establishment of good relations with the local government and residents, and establish a good image of Chinese enterprises. We should continue to strengthen enterprise management, improve their own quality and strength, and strive to cooperation projects built fine works, and make due contribution to local economic development and social welfare.

(D) insist on equality and mutual benefit, mutual benefit and win-win. In recent years, Chinese enterprises' overseas investment interests damage cases have occurred, the individual areas of human life and property safety is threatened. The occurrence of these events, and damage the legitimate rights and interests of investors and investor confidence. Hope that the cooperation between the two governments to uphold the principle of mutual benefit and common development, strictly fulfill their contractual consultation, through friendly equality to solve the problem of cooperation.
The Chinese government encourages and supports Chinese enterprises to go out, and also welcomes foreign enterprises in China to carry out the field of energy investment and cooperation. Since the reform and opening up, China has formed a perfect legal system on foreign investment, issued a series of policies to encourage foreign investment and Industrial Guidance Catalogue. In the field of energy, China is encouraging foreign oil and gas exploration and development in a cooperative manner, in shale gas and other unconventional oil and gas exploration and development; encourage investment in the construction of new energy power plants, mainly to generate electricity, hydropower and clean combustion technology fire power plants; multinational energy companies are encouraged to set up R & D center in China.

Ladies and gentlemen!

Strengthen energy cooperation to promote common development, and maintenance of global energy security significance significant. Let us join hands to strengthen dialogue and exchanges, deepen pragmatic cooperation and promote economic development, to achieve mutual benefit and win-win, for the benefit of the people of all countries.
Thank you!
                                                                                                                                           Editor: Han Xu


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