CHINA’S ENERGY SECTOR & SINOPEC

中国石油化工股份有限公司 Section 1 China’s Energy Sector Fundamentals Section 2 China’s Oil & Gas Supply/Demand Section 3 Forecast on China’s Oil & Gas Supply/Demand Section 4 Profile of SINOPEC Section 5 SINOPEC in USA Contents

中国石油化工股份有限公司 CHINA’S ENERGY SECTOR FUNDAMENTALS Section 1

中国石油化工股份有限公司 China’s Energy Demand Composition  Coal plays a dominant role in China’s energy consumption.  Oil accounts for 17.6%,which is half of the world’s average level of 34%, and gas shares 4% in China and much lower than the world average of 23.8%.

中国石油化工股份有限公司 China’s Total Energy Supply and Demand  In 2010,China’s primary energy production is 2960 million tons of coal equivalent, while the energy consumption is  Domestic energy production supplies 92% of the consumption, whereas domestic oil production provides 45% of the demand, gas shares 91% of domestic requirements productionmillion ton coal equivalent coalmillion ton oilmillion ton gasBillion cubic metres Hydro.etcmillion ton coal equivalent consumptionmillion ton coal equivalent ?3250 coalmillion ton oilmillion ton gasBillion cubic metres hydro.etcmillion ton coal equivalent China’s Primary Energy Production and Consumption

中国石油化工股份有限公司 CHINA’S OIL & GAS SUPPLY/DEMAND Section 2

中国石油化工股份有限公司 China’s Shares of Fossil Energy in World Reserves & Productions

中国石油化工股份有限公司 Technologically recoverable reserves of crude oil have been increased stably, with a R/P ratio of 12 years. The reserves are in eastern, northwest, and offshore areas of China. China’s Oil Reserves

中国石油化工股份有限公司 China’s Oil Production and Consumption  In 1993, China became an net importer of crude oil.  In recent years ， oil consumption has been driven by large scale infrastructure construction activities and development of the manufacture industries.  Oil consumption rose to 449 million tons in 2010, with an annual average growth rate of 7.2% during KT

中国石油化工股份有限公司 10 Compared with developed countries, China's per capita oil consumption is less than half of the world’s average. World average 0.62 Ton China’s Per Capita Oil Consumption

中国石油化工股份有限公司 FORECAST ON CHINA’S OIL & GAS SUPPLY/DEMAND Section 3

中国石油化工股份有限公司 Forecast on World’s Energy Consumption Structure By 2030 ， there will be significant changes in world’s energy consumption structure. Consumption of coal and oil in terms of percentage in total energy consumption is expected to decrease while that of natural gas shall go up and take a higher portion.

中国石油化工股份有限公司 The History of China’s GDP, Oil & Gas Consumption Gas consumption Oil consumption GDP

中国石油化工股份有限公司 The Forecast on China’s Energy Demand

中国石油化工股份有限公司 Forecast of China’s Oil Production and Consumption mt

中国石油化工股份有限公司 Forecast on Gas Reserve and Consumption BCM China’s gas production in 2030

中国石油化工股份有限公司 Forecast of China’s Gas Production and Consumption BCM

中国石油化工股份有限公司 Develop Alternative Energies Develop Alternative Energies : 12 th FYP Clean Energy Target Accounting for 11.4% of total energy consumption by 2015, 15% by 2020 SourceTarget(GW)CurrentIncentives/Plans Wind Set benchmark wind power prices Solar Plan for solar water heaters for 30% of households by 2020 Hydro Plans to raise hydro power price Biomass Preferential electricity tariff to biomass power producers Nuclear plants under construction

中国石油化工股份有限公司 PROFILE OF SINOPEC Section 4

中国石油化工股份有限公司 SINOPEC PROFILE  Sinopec Corp. is one of the largest integrated energy and petrochemical companies with upstream, midstream and downstream operations in China.  Sinopec Corp listed on stock exchanges in Hong Kong, New York and London in 2000, and on Shanghai Stock Exchange in 2001.

中国石油化工股份有限公司 Refining E&P The second largest oil & gas producer in China 3963 mboe of oil & gas proved reserve at the end of 2010 Oil production 900KBD, gas production 441bcf in 2010 Largest refiner in China Total refining capacity of 222 million tons per year (4.44 million bbls per day) Marketing Chemicals Owns the largest oil products distribution network in China, running service stations as of end of Over 60% market share of oil products in mainland China The largest petrochemical producer and distributor in China, 4 th in the world Ethylene capacity 9.33 mmta 21 Sinopec Profile One of the Largest Integrated Petrochemical Companies in Asia

中国石油化工股份有限公司 22 Strategic structure adjustment Market expansion Innovation in technology, management, and staff development Resource optimization, energy conservation and emission reduction International operation Corporate Strategies ResourcesMarketing Differentiation Low Emission Globalization Integration To Build a First-Class Global Corporation SINOPEC’S Vision Vision for the “12th Five-Year Plan” Period

中国石油化工股份有限公司 SINOPEC IN USA Section 5

中国石油化工股份有限公司 SINOPEC Representative Office (New York) Public Relations Investor’s Relations UNIPEC America, Inc.(New York) Oil/Gas trading in Americas Trading assets investment SINOPEC USA, Inc. (Houston) Import/Export equipment and petrochemicals SINOPEC IN USA Sinopec is engaged in the supply and trading of oil/gas, petrochemicals, equipment and materials. In 2010, the Company’s total trading volumes of crude and refined products were 186 and 20 million tons respectively. The Company witnessed rapid growth in trading chemicals, equipment and materials.

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