Petrochina Kunlun Gas Company Research On The Development Strategy

Gas is the general term of the gaseous fuel, which can burn and release heat for urbanresidents and industrial enterprises. The type of gas is various, mainly including natural gas,artificial gas, and liquefied petroleum gas.Comparing with developed countries, city gas in China has a late start. At present, onlythe large and medium-sized cities have pipeline network and the distribution of gas includesliquefied petroleum gas, artificial gas, and natural gas. Among these, liquefied petroleum gashas the largest proportion, accounting for about63%of the population, following byartificial gas which accounts for about23%and the minimum proportion is natural gas,accounting for about13%. But with the rapid development of the national economy,government and the community have started paying attention to the changes in energystructure and the improvement in the air quality. Due to the high cost, poor temperament andthe environmental pollution during the production process, artificial gas is graduallywithdrawing from people’s attention. However, natural gas as a clean, efficient and cheapenergy, is attracting more and more people. Especially in recent years, China’s onshore andoffshore natural gas reservation are growing rapidly and the found of the world’s largest gasfield such as Suge Li continues being found. All these have promoted the development anduse of natural gas in China, changed the proportion of natural gas in urban distributionbecome the protagonist of the city gas and also led to the development of China’s city gasindustry as a whole.Therefore, the China National Petroleum Corporation has made a resolute decision toset up a main gas company, which will be used to change the "individual" business strategy.Then PetroChina Kunlun Gas Co., Ltd. is born out. PetroChina Kunlun Gas Co., Ltd.(referred to as the Kunlun Gas) is to achieve vertical integration of natural gas and to betterfulfill the responsibility and social services. Approved by China National PetroleumCorporation SAIC on6th August2008, on the basis of Oil and Gas Co. Ltd. China Oil GasGroup Development Division established which has been reorganized and integrated withPipe Gas Investment Firm. This year, the company successfully achieves the integration withKunlun. At present, it is a domestic city gas operation specialized company, which hasa registered capital of more than60billion. Kunlun Gas company main business scope is city gas pipeline network construction,urban gas transmission and distribution, natural gas and liquefied petroleum gas sales andafter-sales service and other related businesses. Under the correct guidance from thecompany’s leadership team, under the joint efforts of all staff, the company has become thelargest gas operator in just4years. The company is going towards the goal of becomingdomestic first-class and international advanced professional gas company. By2012, theexpected sale of natural gas is70million standard side,6.5million tons of liquefied gas,equivalent to a total sales of gas142million standard side. The average annual growth ofnatural gas sales will be more than80%, sales doubled in liquefied gas purchase andmarketing process, main business revenue and profits climbing. Till now the company has280wholly-owned subsidiaries, branches, holding companies, joint stock companies and itsbusiness involves outside Hong Kong, Macao and Taiwan provinces, municipalities andautonomous regions. Strictly fulfilled three major responsibility in the oil companies,Kunlun Gas company has established a good image, standardized service to win the market.This essay is divided into six main parts.The first part is the introduction. It discusses the background and the significance of theessay’s chosen topic and states the structure of the content and arrangements of the researchas well as the research methods and technology threads.The second part is related theoretical basis.The third part is the current analysis of Kunlun Gas Company.The fourth part is the SWOT analysis of Kunlun Gas Company.The fifth part is the strategic objectives and implementation of Kunlun Gas Company.The final part is the conclusion. This essay aims to explain the importance of strategicmanagement in a company combining with the analysis of company strategies based onanalysing Kulun Gas Company’s strategies and managing methods by taking Kulun GasCompany’s development as an example.