In 2017, China and Myanmar agreed to jointly establish the China-Myanmar Economic Corridor, and signed a Memorandum of Understanding regarding their cooperation. The Corridor is derived from the practices of the Sino-Myanmar oil and gas pipeline and other interconnection and cooperation between China and Myanmar, and in line with the common needs of Myanmar’s domestic development along with Belt and Road construction.At present, the Corridor has established such key cooperation areas as infrastructure, cross-border economic cooperation zones, cultural exchanges and the digital Silk Road. The forms of cooperation between the two countries have gradually developed in depth in clear direction. However, the Corridor faces multiple challenges in political, economic and security terms, such as the uncertain transition of Myanmar, lack of mutual trust between the two sides, differences in development concepts, intervention of countries outside the region and instability of some areas along the Corridor. As such, policy communication and planning alignment between the two countries need to be enhanced during the construction of the Corridor so as to foster economic growth poles along the route and create momentum for sustainable development, thus boosting the foundation of the Belt and Road and the community of shared future for mankind.

 

 

2019 is the year of the reform and opening up of the whole oil and gas industrial chain. The oil and gas industry will conscientiously implement the new "four revolutions and one cooperation" energy security strategy of the CPC Central Committee. Centring on the main links of the Opinions on Deepening the Reform of the Oil and Gas System, the oil and gas industry has made great progress in deepening reform, opening up further to the outside world, optimising business environment and seeking progress while maintaining stability. In 2019, the oil and gas industry was fully open to private and foreign-funded enterprises, and the opening of the whole industrial chain entered a new era. The oil and gas exploration and exploitation market was fully liberalised, the National Oil and Gas Pipeline Network Group Co., Ltd. (hereinafter referred to as the National Pipeline Network Company) was established, and the reform was unprecedented. Continuous progress was made in reducing taxes and fees, and streamlining administration and delegating power. The relationships between enterprises and the government, production and environmental protection became more coordinated, and the business environment of the oil and gas industry was greatly optimised. In 2020, China will continue to introduce relevant supporting policies on the reform of the oil and gas system, and enter the stage of comprehensive reform policy implementation. The pattern of “deepening reform, expanding opening up and diversifying competition” in the oil and gas industry will gradually take shape.
Marking the 70th anniversary of the founding of the People’s Republic of China, 2019 was a key year for building a moderately prosperous society in an all-round way. In 2019, the reform of the upstream, midstream and downstream of the oil and gas industry was carried out synchronously, and the pace of marketisation was rapid and stable. China explicitly supports private enterprises to enter the fields of oil and gas exploration and development, refining, sales, storage and transportation, and pipeline transportation, as well as crude oil import and refined oil export. It has lifted restrictions on the upstream exploration and development of oil and gas, and the entry of foreign investment in urban gas. The opening of the whole industrial chain to the outside world has entered a new era. The Foreign Investment Law and related supporting policies have been promulgated one after another. The new resource tax law maintains the existing tax breaks and exemptions for oil and gas resources, adjusts the special fund support policy for unconventional gas, and extends it to 2023. The business environment has been constantly improving. A series of policies help to improve the efficiency of resource allocation and ensure the secure and stable supply of oil and gas.

In 2019, China launched a series of reform measures in key areas such as increasing oil and gas reserves and production, pipeline network reform and downstream urban gas; the overall operation of the natural gas industry remains stable. In 2019, China’s apparent natural gas consumption crossed the 300 billion m³ mark for the first time, reaching 306.7 billion m³, up by 9.4% over the same period in the previous year. Domestic gas enjoys a sound trend of increase in reserves and production, with an output of 174 billion m³, up by 10.8% over the same period in the previous year. The growth rate of imported natural gas dropped from a high level, with imported pipeline gas and imported LNG totalling 132.2 billion m³ in 2019, up by only 6.5% over the same period in the previous year. External dependence decreased for the first time. In 2020, there is downward pressure on the macro-economy. At the same time, affected by the COVID-19 pandemic, the increment and growth level of natural gas demand will continue to decline compared with 2019, and the market demand growth rate is expected to reach 4% - 5%.

The Chinese government is actively and steadily promoting carbon trading. As a central energy company, CNOOC takes the initiative to strengthen carbon emission management, conduct the carbon inventory of key enterprises and implement the carbon emission impact assessment of fixed asset investment projects. In addition, CNOOC builds a low-carbon management information platform and establishes a low-carbon management system. On the basis of systematic analysis of the Group’s carbon emissions and compliance with all the carbon quotas of its affiliated units, CNOOC takes the initiative to discuss the feasibility of carbon futures trading. Based on risk analysis in the four aspects of policy, market, mobility and management, this paper puts forward specific countermeasures to provide exploration for Chinese oil and gas enterprises to carry out carbon trading in depth.