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CNPC > About CNPC > Our Businesses > Marketing & Trading
Marketing & Trading
Marketing_and_Trading_180_115

Marketing

CNPC's marketing activities are mainly focused on crude oil and petroleum products, basic petrochemicals, derivative chemicals and other chemicals.

Taking advantage of a well-organized marketing network for refined products and a centralized marketing system for chemicals, CNPC has established an enhanced and efficiently operated marketing network nationwide with retail outlets and service stations set up across the country to providing services to more than two million customers on a daily basis.

Given the diversity of competitors and supply channels and inspired by the business philosophy of "Premium Service for People", we are committed to providing quality products and premium services to our customers through a conversion of growth model for CNPC's marketing teams.

CNPC's refined products sales volume and market share have been increasing steadily in recent years, taking up about 40% of the domestic market. In 2016, our domestic sales of refined products remained flat at 113.03 million tons, and sales of high value-added 98# gasoline and jet fuel increased by 689% and 11.3% year-on-year, respectively.

As the marketing structure has continuously improved, our brand value and market recognition have also grown. Through the implementation of the localization strategy, market share of "Kunlun" lube oil has been growing every year, thanks to our advantages in resources, R&D and rigorous quality management, compatibility with local requirements, auto and road conditions and domestic customer needs.

Service Stations

CNPC endeavors to improve the construction quality and the service level of service stations, focusing primarily on revenues from large-scale service stations and the accessibility of small- and medium-sized services stations. As of the end of 2016, CNPC had 20,895 service stations in 31 provinces, municipalities and autonomous regions as well as Hong Kong SAR in China, serving more than 20 million customers on a daily basis.

With more extensive and improved functions, the stations provide diversified services to satisfy customers’ needs. Convenience stores are available at 89% of these stations. The stations improve retail services by means of "Internet +Marketing" such as "Smart Service Stations", the "uSmile e-Station" app, Alipay and WeChat based mobile payment, and install self-service terminals for pre-paid fuel cards. With the accelerated integration of online and offline marketing, we had a much greater capability to provide comprehensive services.

Non-fuel Service

In CNPC, the synergy of the integrated marketing model comprising retail, fuel cards and non-fuel business has emerged. In 2008, we launched the uSmile brand for the integrated operation and management of our convenience shops. Using the smile design shows our service philosophy and quality in the sales business.

Non-fuel products is an important profit growth point among our marketing business. Taking advantages of the retail network, we realize integrated marketing at service stations by upgrading our convenience stores and carefully selecting of commodities. We push forward the development of our self-produced commodities and, in particular, strengthen the promotion of the Kunlun Star commodity family. Vehicle services are offered at service stations, either by ourselves or our JVs, or by renters. Overall profitability has been improved by utilizing the resources of non-fuel suppliers through joint marketing and brand integration. In 2016, our non-fuel products reported revenue of RMB 14.4 billion and profit of RMB 1.7 billion, up 16% and 17% year-on-year respectively.

Rapid oil change service. We have established 16 outlets in Beijing, Daqing, Lanzhou, Dalian, and Chongqing. All these outlets provide emergency assistance in a short range of 3-5 kilometers.

International Trade

Supported by our overseas operation hubs and distribution networks, we conduct trading in crude oil, refined products, natural gas, and petrochemicals, as well as international carbon trading, sales of our overseas equity oil and transactions in oil and refined products futures in over 80 countries around the world.

PetroChina International deals with international trade in crude oil and about 100 kinds of refined and chemical products to and from over 80 countries and regions by way of commission agency, self-support import/export, transit and consigned processing for export. During its operations, PetroChina International has carried out successfully international transit business in crude (Minas, Basra and Oman), gasoline and fuel oil, as well as other businesses such as imported materials processing, oil products exchange, insurance agency and hedging services. Overseas wholesale of refined oil is carried out by means of tank rental and blending. PetroChina International also trades gasoline in Platts Assessment Window and actively makes overseas investments by acquiring and merging oil depots and filling stations.

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