SNPTY - SNPTY STOCK NEWS

On April 12, 2023, Sinopec signed an equity participation agreement with QatarEnergy to acquire 1.25% shares in Qatar's North Field East (NFE) LNG expansion project, the largest LNG project globally. This follows a 27-year long-term LNG purchase agreement made in November 2022 for the supply of 4 million tons of LNG annually. The $28.75 billion NFE project aims to boost Qatar's LNG export capacity from 77 million tons to 110 million tons per year. The partnership enhances Sinopec's energy supply security and reflects China's significance as a natural gas market. This milestone marks Sinopec as the first Asian stakeholder in the NFE project, showcasing strengthened Sino-Qatar cooperation.

Sinopec, through its Hainan Baling Chemical New Material Co., Ltd. subsidiary, has commenced production at its new styrene-butadiene copolymer (SBC) plant in Hainan, China. This facility, which represents an investment of 1.924 billion yuan (approximately USD 279.74 million), boasts an annual production capacity of 170,000 tons, including 120,000 tons of SBS and 50,000 tons of SEBS.

This project solidifies Sinopec's position as the global leader in SBC production capacity. The new plant employs advanced clean manufacturing techniques and proprietary technologies, focusing on customer customization and efficiency. By leveraging local resources and minimizing costs, Sinopec aims to enhance its revenue and export capabilities to developing markets across Europe and Asia.

Sinopec's President, Ma Yongsheng, advocates for integrating carbon capture, utilization, and storage (CCUS) into China's voluntary emission reduction system. He emphasizes CCUS as a vital decarbonization technology, aiming to bridge the gap between existing projects and the scale needed to meet emission reduction targets. Ma proposes creating a unified national CCER market to encourage participation in carbon reduction initiatives. He stresses the importance of national standards for CCUS certification, alongside potential tax incentives. Additionally, he highlights the role of chemical recycling of waste plastics in promoting sustainability within the refining and chemical industries.

Sinopec has launched the Inner Mongolia Erdos Wind-Solar Green Hydrogen Project, marking a significant milestone in its hydrogen development strategy. The project, inaugurated on February 16, aims to leverage the rich solar and wind resources in Inner Mongolia to produce 30,000 tons of green hydrogen and 240,000 tons of green oxygen annually. With an investment of 5.7 billion yuan (approximately USD 828.04 million), it is projected to reduce carbon emissions by 1.43 million tons each year, contributing 600 million yuan to GDP. This initiative positions Sinopec as a leader in China's green hydrogen production efforts, supporting national energy security and ecological development.