PetroChina maintains stable operations despite Strait of Hormuz disruptions

PetroChina, Asia's largest oil and gas producer, said on March 30 that its operations are continuing as normal despite rising tensions and disruptions in the Middle East, Reuters reports.

About 10% of PetroChina’s crude oil and natural gas supplies are delivered via the Strait of Hormuz, which accounts for roughly 20% of global oil and gas shipments. The ongoing war in Iran and broader regional conflict have significantly constrained this vital route, pushing oil prices higher and forcing many refiners and petrochemical producers in Asia to cut output.

PetroChina Chairman Dai Houliang told reporters that the company’s own production in China, pipeline imports, equity stakes in overseas projects, and long-term contracts for non-Middle Eastern supplies account for approximately 90% of its crude processing and natural gas sales. “Hence PetroChina can afford ‌operating ⁠its oil and gas supply chains at stable and relatively high operating rates for a long time,” he said at an earnings briefing.

While Dai acknowledged that PetroChina’s Middle East investments have been impacted by the conflict, he said the company has contingency plans, including trading activities, to safeguard supplies. He did not provide further details.

PetroChina holds significant stakes in oil and gas projects in Iraq, the United Arab Emirates, and Oman, underscoring its strategic presence in the region. In contrast, China’s second-largest refiner, Sinopec, has already scaled back production due to disruptions in Middle Eastern crude supplies.

By Vugar Khalilov