Conflict in the Middle East has persisted for more than a month, putting the Strait of Hormuz—a global energy shipping chokepoint—under severe strain and triggering sharp volatility in global energy markets. As the world’s largest energy importer, China relies on imports for 72.7% of its crude oil and 40% of its natural gas, making domestic supply stability a major public concern.

In recent briefings on their 2025 full-year results, China National Petroleum Corporation (CNPC), Sinopec, and CNOOC—the country’s three state-owned oil and gas giants—have spoken collectively on the energy impact of the Middle East situation. They clearly stated that domestic crude oil and refined product supplies remain secure, and pledged to fully safeguard national energy security.

CNPC: Acts as Stabilizer, Builds Comprehensive Supply Security

Dai Houliang, Chairman of CNPC, said at the company’s results briefing in Hong Kong on March 30 that operations remain generally normal, with limited impact on core supplies from the Middle East tensions.

Only about 10% of CNPC’s crude oil and natural gas imports pass through the Strait of Hormuz, while over 90% is covered by domestic production, pipeline imports, and long-term contracts from non-Middle Eastern regions, effectively reducing overreliance on a single transit route.

CNPC has activated and refined emergency trade and supply plans. Its full oil and gas industry chain is operating stably at over 90% capacity, with ample upstream supply and diversified feedstock sources.

Dai added that although investments in the Middle East have been affected to varying degrees, the company remains optimistic about its chemicals business this year thanks to R&D and optimized structure. Its newly completed 2 million-tonne-per-year ethylene project is boosting capacity, with rising utilization rates for ethane and ethylene.

Sinopec: Prioritizes Supply Security, Eases Shipping Bottlenecks

As the world’s largest refiner and second-largest chemical company, Sinopec Vice Chairman Zhao Dong affirmed at its March 23 results briefing that supply security is the company’s top priority, and domestic refined product supplies are stable and under control.

To mitigate shipping disruptions via the Strait of Hormuz, Sinopec has acted swiftly: it has accelerated purchases of Saudi crude exported through ports in the Gulf of Aden, rerouted shipments to bypass the strait, and actively expanded non-Middle Eastern crude sources to maintain supply channels.

Zhao noted that Sinopec made minor adjustments to refining runs in March without affecting overall market supply, and will dynamically adjust production plans for April and May based on developments. Crude and product inventories have been ample in recent months, with full crude supply assurance for the second quarter.

While high oil prices have pressured refining margins, product marketing has remained steady, and upstream operations have benefited from higher prices. The company is seeking policy support from government ministries, including possible use of social responsibility reserves, to help stabilize market supply.