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China National Petroleum Corporation (CNPC) has set up a dedicated power arm in Beijing China Petroleum Electric Energy Co Ltd to steer its growing new-energy business. Wholly owned by CNPC's Daqing Oilfield subsidiary and backed with 5 billion yuan (about USD 703 million) of capital, the unit will act as a market-oriented platform to manage power production, supply, and sales. CNPC's leadership said this move reflects its strategy to adapt to rapid renewable grid integration, deeper power market reform, and surging demand for green electricity.
China National Petroleum Corporation (CNPC) has inaugurated a new power subsidiary in Beijing, called China Petroleum Electric Energy Co Ltd, according to a company statement. The move represents a significant step in CNPC's broader strategy to scale up its presence in the new-energy sector. Advertisement
CNPC Chairman Houliang Dai explained that the company will serve as a central hub for the group's energy transition efforts. He noted that it is intended not only to drive market-oriented reform in power business, but also to optimise how CNPC produces, supplies, and sells electricity.
According to Dai, the new power unit must respond proactively to the fast-expanding integration of renewable power into the grid, deeper reforms in the power market, and rising demand for green electricity from consumers.
The Beijing-based entity was originally established in 2017, with a registered capital of 5 billion yuan (roughly USD 703 million), and is fully funded by CNPC's Daqing Oilfield Co Ltd.
This move builds on CNPC's increasing focus on clean energy. In recent years, the company has been diversifying beyond oil and gas into renewables such as solar, wind, geothermal, and hydrogen.
Last year, CNPC completed its biggest solar project to date: a 1.3 million kW photovoltaic plant at its Tarim oilfield, which is now connected to the national grid. The project also includes a large-scale energy storage system with a capacity of 130,000 kW/260,000 kWh.
CNPC's 2023 sustainability report further highlighted that the company plans to become a fully integrated energy provider operating across oil, gas, geothermal, electricity, and hydrogen. In line with this vision, CNPC also acquired Potevio New Energy, an electric-vehicle charging company.
Despite this green pivot, CNPC has emphasized that oil and gas will remain central to its energy mix in the near term.
Source Reuters
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