PetroChina has joined the Oil & Gas Decarbonisation Charter (OGDC), a key pledge from last year’s UN climate summit aimed at reducing industry emissions.
As China’s largest oil and gas producer, PetroChina is now part of over 50 fossil fuel companies that signed the December pledge to achieve net-zero operations by 2050. These companies aim to end routine flaring by 2030 and significantly reduce upstream methane emissions to help mitigate global warming and its adverse effects on climate change.
Bjorn Otto Sverdrup, head of the OGDC Secretariat, described PetroChina’s addition as “a significant milestone” in the global effort to decarbonise the oil and gas sector. The statement, issued by the United Arab Emirates, host of Cop28, highlighted the growing influence of Chinese oil and gas enterprises in promoting low-carbon solutions.
According to the statement, PetroChina and other OGDC signatories now represent over 42% of global oil production, up from 40% last year.
PetroChina, listed in Hong Kong and a subsidiary of state-owned China National Petroleum Corp, produced 937.1 million barrels of crude in 2023. The company accounted for about half of China’s domestic oil production and 60% of its gas production, based on company data.
The International Energy Agency (IEA) reports that oil and gas operations contribute about 15% of global energy-related emissions, equating to 5.1 billion tonnes of greenhouse gases. China is the world’s largest emitter of greenhouse gases, responsible for 35% of global carbon dioxide emissions in 2023.
To achieve net zero by 2050, the global energy sector must cut emissions by 60% by 2030, according to the IEA. This requires a 50% reduction in emissions intensity and decreased oil and gas consumption. The oil and gas industry also significantly contributes to methane emissions. The World Bank estimates that venting, leakage, and flaring by the sector cause about 25% of global anthropogenic methane emissions.
Huang Yongzhang, president of PetroChina, stated, “As a signatory to the Oil & Gas Decarbonisation Charter, we will actively promote green and low-carbon practices, contributing the wisdom and strength of PetroChina to the global green and low-carbon transition.”
Aligned with China’s 2060 net-zero goal, PetroChina aims to become an integrated energy company, encompassing oil, gas, thermal energy, electricity, and hydrogen. The company is developing wind and solar projects in Xinjiang and Qinghai and investing in carbon capture, utilisation, and storage demonstration projects, as well as green hydrogen production.