China the fuel for growth
To some, the phrase when East meets West depicts what happens when two cultures collide. For BP and China, there is no such clash, rather a 30-year history of teaming up to share common interests in areas such as safety, sustainable growth and solving the energy needs of the future
Liming Chen’s life changed the day he learned he had passed the national university entrance exams, when his results were announced over his village’s loud speaker system. Born in poverty on a farm in the middle of the Junger basin – an area surrounded by mountains in the far northwest of China – Liming’s schoolwork consisted more of cotton picking than multiplication tables. Today, he heads up BP’s $4.7 billion business investment in China.
“I always say to young people ‘if you believe that you can learn only what they teach you in school, then I should be a farmer today,’” he says.
Liming and millions like him have raised themselves out of poverty, as China has transformed. With double-digit growth over the past 30 years, it is now the world’s second largest economy, and its car market outstrips the US, with 18 million vehicles sold last year, compared to 11 million sold in the US.
But as China looks to a future that many predict will see it replace the US as the world’s largest economy, Liming doesn’t forget the lessons of the past.
“The harsh environment taught me the important lesson of teamwork,” he says. It is a sentiment that pervades BP’s work in China. “Our focus is not just on BP’s needs, but on China’s needs and finding overlapping interests and room for co-operation.”
“You have to be willing to learn, but you also have to be humble enough to learn from others,” he adds. The work to implement the best safety measures at SECCO (see page 44), BP’s petrochemical joint venture with state oil company Sinopec, is proof of this belief. BP has also shared its experience of responding to the Gulf of Mexico oil spill, and the lessons it has learned, with state oil companies such as Sinopec.
“I always say to young people ‘if you believe that you can learn only what they teach you in school, then I should be a farmer today,’” he says.
Liming and millions like him have raised themselves out of poverty, as China has transformed. With double-digit growth over the past 30 years, it is now the world’s second largest economy, and its car market outstrips the US, with 18 million vehicles sold last year, compared to 11 million sold in the US.
But as China looks to a future that many predict will see it replace the US as the world’s largest economy, Liming doesn’t forget the lessons of the past.
“The harsh environment taught me the important lesson of teamwork,” he says. It is a sentiment that pervades BP’s work in China. “Our focus is not just on BP’s needs, but on China’s needs and finding overlapping interests and room for co-operation.”
“You have to be willing to learn, but you also have to be humble enough to learn from others,” he adds. The work to implement the best safety measures at SECCO (see page 44), BP’s petrochemical joint venture with state oil company Sinopec, is proof of this belief. BP has also shared its experience of responding to the Gulf of Mexico oil spill, and the lessons it has learned, with state oil companies such as Sinopec.
BP has a long history with China, and is partnering the country in some major areas. It is working with Chinese companies on building safer operations; teaming up with Chinese companies looking for global expansion; and helping China find ways to meet its growing energy needs, which includes developing alternative forms of energy.
It is also supporting the country’s growth – in February 2011, BP’s petrochemical plant at Zhuhai announced plans for a hike in production of purified terephthalic acid (PTA) to 1.7 million tonnes a year, making it one of the largest PTA plants in the world.
And BP is playing a supporting role as China increases its presence on the international stage, partnering Chinese companies to access new resources. In fact, these partnerships are proving successful in Angola, Indonesia and Iraq. Liming says, “Iraq is a big deal that combines BP and CNPC capabilities and strength together.”
These joint projects are important as China looks to increase its energy security. BP’s Energy Outlook 2030 projects China’s oil consumption will grow by 8 million barrels of oil a day (mb/d), to reach 17.5 mb/d by 2030, overtaking the US as the world’s largest oil consumer. “I believe multinational companies like BP can play an important role in China’s energy security,” Liming says.
To this end, BP has joined in alliance with the China National Offshore Oil Corporation (CNOOC) to explore for and produce gas from the South China Sea, as the country attempts to reduce its heavy dependence on coal, which now makes up 70% of its energy mix. As China cleans up its skies and polluted cities, cleaner fuels such as gas are experiencing strong growth.
It is also supporting the country’s growth – in February 2011, BP’s petrochemical plant at Zhuhai announced plans for a hike in production of purified terephthalic acid (PTA) to 1.7 million tonnes a year, making it one of the largest PTA plants in the world.
And BP is playing a supporting role as China increases its presence on the international stage, partnering Chinese companies to access new resources. In fact, these partnerships are proving successful in Angola, Indonesia and Iraq. Liming says, “Iraq is a big deal that combines BP and CNPC capabilities and strength together.”
These joint projects are important as China looks to increase its energy security. BP’s Energy Outlook 2030 projects China’s oil consumption will grow by 8 million barrels of oil a day (mb/d), to reach 17.5 mb/d by 2030, overtaking the US as the world’s largest oil consumer. “I believe multinational companies like BP can play an important role in China’s energy security,” Liming says.
To this end, BP has joined in alliance with the China National Offshore Oil Corporation (CNOOC) to explore for and produce gas from the South China Sea, as the country attempts to reduce its heavy dependence on coal, which now makes up 70% of its energy mix. As China cleans up its skies and polluted cities, cleaner fuels such as gas are experiencing strong growth.
“BP could be a strong supporter of the Chinese desire for transformation from today’s energy and pollution-intensive pattern of growth, to a cleaner and more sustainable future,” says Xavier Chen, BP’s vice president of policy and integration in China.
Liming agrees. “China knows it can’t repeat the model that industrialised countries have gone through, with high energy consumption and environmental damage. The central government has implemented tough measures that include reducing the energy intensity of gross domestic product by 20% in just five years.
To read this article in full please download the latest edition of BP Magazine:
To read this article in full please download the latest edition of BP Magazine:
Vital statistics:
Name: ChinaTotal area: 9,596,961 square kilometres
Population: 1,336,718,015
Life expectancy: 74.68 years
Capital city: Beijing
Climate: extremely diverse; tropical in south to subarctic in north
Religion: Daoist (Taoist), Buddhist, Christian 3%-4%, Muslim 1%-2%
