Beijing, November 18, 2025 – China National Petroleum Corporation (CNPC) officially inaugurated its power unit, China Petroleum Electric Energy Co Ltd, in Beijing on Monday, signaling the state-owned oil giant’s strategic push into the new energy sector.

The power unit is intended to serve as CNPC’s core hub for its market-oriented power transition, as well as a platform to optimize electricity production, supply, and sales, CNPC Chairman Houliang Dai said in a company statement.

CNPC’s Vision for the Power Unit

Chairman Dai highlighted that the new subsidiary will actively adapt to several emerging trends in China’s energy sector, including:

• Rapid expansion of renewable power grid integration
• Accelerated power market reforms
• Rising demand for green electricity

The unit aims to support CNPC’s broader strategy of integrating traditional oil and gas operations with renewable and low-carbon energy solutions, reflecting China’s national energy transition priorities.

Background and Investment

China Petroleum Electric Energy Co Ltd was originally established in 2017 with a registered capital of 5 billion yuan ($703.1 million) and is fully funded by CNPC’s Daqing Oilfield Co Ltd. The unit will play a central role in CNPC’s long-term strategy to diversify its energy portfolio and capitalize on growth opportunities in China’s renewable power market.

Strategic Importance

The establishment of the power unit aligns with China’s ongoing energy reforms and the government’s push for sustainable, low-carbon electricity. Analysts note that CNPC’s move demonstrates how traditional oil and gas giants are increasingly investing in renewable power, positioning themselves to compete in a rapidly evolving energy landscape.

By integrating its expertise in energy infrastructure with renewable initiatives, CNPC expects to strengthen its competitive edge in both the domestic and international green electricity markets, while contributing to China’s carbon neutrality goals.