PetroChina joins Oil and Gas Decarbonisation Charter

PetroChina, a unit of the state-owned China National Petroleum Corporation, has become one of the 53 signatories of the Oil and Gas Decarbonisation Charter (OGDC), according to Emirates News Agency (WAM).

PetroChina accounts for 3.5% of the world's oil production. Huang Yongzhang, President of PetroChina said, "PetroChina stays committed to green development and accelerates the transition towards a green and low-carbon future with a three-step approach of 'clean substitution, strategic replacement, and green development'. While providing oil and gas, we are promoting the transformation of PetroChina into an integrated energy company covering oil, gas, thermal energy, electricity, and hydrogen," WAM reported.

The OGDC was launched last December during COP28, aiming to accelerate climate action and achieve substantial impact across the oil and gas sectors. The charter, initiated by the COP28 Presidency and Saudi Arabia at the UN climate summit in the UAE, seeks to decarbonise the oil and gas sector. So far, the signatories cover more than 42% of global oil production.

At the eighth Ministerial on Climate Action (MoCA) in China, Dr Sultan A. Al Jaber, Minister of Industry and Advanced Technology and COP28 President, highlighted the importance of the charter. “We launched the Oil & Gas Decarbonisation Charter at COP28 in recognition of the need for inclusivity and transparency. We must bring everyone in to be accountable and responsible for climate action, and that includes including oil & gas companies in the conversation and making them active drivers of practical solutions to keep 1.5C within reach,” he said.

Signatories of the charter have committed to net-zero operations by 2050 and ending routine flaring by 2030. They also aim for near-zero upstream methane emissions and agree to work towards industry best practices in emission reductions. The charter includes several key actions including investing in the energy system of the future, including renewables, low-carbon fuels, and negative emissions technologies, increasing transparency in measurement, monitoring, and reporting, aligning with broader industry best practices, and reducing energy poverty.

Bjorn Otto Sverdrup, Head of OGDC Secretariat, added, "Welcoming PetroChina to the OGDC is a significant milestone. The announcement by the leadership of the company signifies the growing momentum towards industry decarbonisation and further demonstrates the important influence of Chinese oil and gas enterprises in advancing low-carbon solutions. We look forward to working together to achieve impact and motivate others to take climate action in line with the ambitions of the Charter."

More than 50 oil and gas companies that pledged to cut emissions will now collaborate on implementing the charter and advancing the sustainable socio-economic development agenda.

The inclusion of PetroChina, a major player in the global oil industry, underscores the charter's growing influence and the increasing commitment of national oil companies to climate action. This move is expected to encourage more companies to join the initiative and strengthen global efforts to combat climate change.