China Petroleum & Chemical Corp, better known as Sinopec, plans a 24% rise in capital spending to 167.2 billion yuan ($25.5 billion) in 2021 as oil prices and energy demand strengthen.
Sinopec aims to spend 66.8 billion yuan on upstream exploration focusing on shale gas development in southwest China and construction of liquefied natural gas (LNG) import terminals in coastal areas, up from 56.4 billion yuan last year.
“China’s economy is recovering and is expected to achieve relatively good growth. Demand for refined oil products is expected to recover strongly and demand for natural gas and petrochemical products will continue to grow,” the company said in a statement filed to the Shanghai Stocks Exchange on Sunday.
The company on Sunday also reported a 42% drop in net earnings to 33.1 billion yuan last year as the COVID pandemic hit fuel consumption.
Its crude oil production was 280.22 million barrels in 2020, down 1.4% year-on-year, and natural gas output at 1,072.3 billion cubic feet, was up 2.3% from 2019.