Group 1 - The oil and gas extraction sector experienced a decline of 1.56% on September 22, with *ST Xinchao leading the drop [1] - The Shanghai Composite Index closed at 3828.58, up 0.22%, while the Shenzhen Component Index closed at 13157.97, up 0.67% [1] - Major stocks in the oil and gas extraction sector showed varied performance, with *ST Xinchao down 3.66% and China Haikang down 0.91% [1] Group 2 - The net outflow of main funds in the oil and gas extraction sector was 60.73 million yuan, while retail investors saw a net inflow of 50.24 million yuan [1] - Detailed fund flow data indicated that *ST Xinchao had a main fund net outflow of 9.43 million yuan, with retail inflow of 6.08 million yuan [2] - Other companies like Blue Flame Holdings and Intercontinental Oil & Gas also reported significant net outflows from main funds [2]

Group 1 - The "North Gas South Down" energy corridor is China's first natural gas pipeline project using a 1422mm ultra-large diameter, X80 high steel grade, and 12 MPa high pressure level, making it a world-class pipeline project [1] - The project spans 5111 kilometers and passes through 9 provinces, with the northern section completed in December 2019, the middle section in December 2020, and the southern section starting construction in January 2021 [1] - The project has initiated a national leading labor and skills competition to promote safety, environmental protection, engineering quality, innovation, and project progress [1] Group 2 - The West-to-East Gas Transmission Line 4 is another major energy corridor connecting Central Asia and China, with a total length of approximately 3340 kilometers, passing through Xinjiang, Gansu, and Ningxia [2] - The core section from Turpan to Zhongwei is 1745 kilometers long and began construction in September 2022, with a national labor and skills competition launched to enhance project quality and progress [2] - Over 100 participating units and more than 20,000 builders have engaged in the competition, fostering a strong atmosphere for skill improvement and ensuring that the competition follows the pipeline construction [2] Group 3 - The "North Gas South Down" project is expected to achieve full pipeline connectivity 7 months ahead of schedule by December 2, 2024, with an annual gas transmission capacity of 38 billion cubic meters [3] - The West-to-East Gas Transmission Line 4 is scheduled to be operational by June 26, 2025, with an annual gas transmission volume exceeding 15 billion cubic meters, enhancing the reliability and flexibility of energy supply [3] - During the event, a joint activity titled "Model Workers and Craftsmen Enter Campus" was held to inspire youth and promote craftsmanship [3]

Core Viewpoint - The chemical industry is experiencing mixed price movements, with 33 products increasing in price, 31 decreasing, and 36 remaining stable during the week of September 15-21. The report highlights the impact of various macroeconomic factors on the industry, including oil prices and supply-demand dynamics [1][3][4]. Chemical Industry Overview - During the week of September 15-21, 40% of tracked chemical products saw a month-on-month price increase, while 47% experienced a decrease, and 13% remained stable [1][3]. - The top gainers in average weekly prices included acetic acid (East China), NYMEX natural gas, sulfur (CFR China spot price), calcium carbide (East China), and trichloroethylene (East China) [3]. - The top losers in average weekly prices were vitamin E, nitric acid (East China), epoxy chloropropane (East China), dichloromethane (East China), and polyester FDY (East China) [3]. Oil Market Dynamics - International oil prices saw a slight decline, with WTI crude oil futures closing at $62.68 per barrel (down 0.02%) and Brent crude oil futures at $66.68 per barrel (down 0.46%) [4]. - U.S. crude oil production averaged 13.482 million barrels per day, a decrease of 13,000 barrels from the previous week but an increase of 282,000 barrels year-on-year [4]. - U.S. oil demand totaled 20.637 million barrels per day, an increase of 856,000 barrels from the previous week, with gasoline demand at 8.810 million barrels per day, up 302,000 barrels [4]. Fertilizer Market Insights - Urea prices decreased, with the average market price on September 19 at 1,675 yuan per ton, down 0.95% week-on-week and 11.70% year-on-year [6]. - The average daily production of urea was 193,300 tons, an increase of approximately 5,700 tons week-on-week [6]. - The average operating load of compound fertilizer was 40.78%, showing a slight increase of 1.42 percentage points from the previous week [6]. Investment Recommendations - The SW basic chemical sector's price-to-earnings ratio (TTM) is at 25.29 times, in the 75.31% historical percentile, while the price-to-book ratio is at 2.21 times, in the 52.99% historical percentile [8]. - The SW oil and petrochemical sector's price-to-earnings ratio (TTM) is at 11.50 times, in the 23.70% historical percentile, and the price-to-book ratio is at 1.14 times, in the 19.28% historical percentile [8]. - Key investment themes include the resilience of oil prices, the growth potential in new materials, and the recovery of demand supported by policy measures [9].

Group 1 - Shenzhen has hundreds of scientists and scholars listed in the "2025 Global Top 2% Scientists List," indicating the city's growing academic strength and international influence [1] - China National Offshore Oil Corporation (CNOOC) has successfully produced over 700,000 tons of crude oil from the Liuhua 11-1/4-1 oil field, marking a significant achievement in deep-water oil field development [2] - Guangzhou plans to launch low-altitude sightseeing routes along the Pearl River within three years, enhancing tourism and boosting related industries [3] Group 2 - The Hong Kong government has initiated the first meeting of the Northern Metropolis Development and Operation Group, which aims to drive industrial restructuring and multi-engine development in the region [4] - On September 19, the Shenzhen Component Index closed at 13,070.86 points, down 0.04% [5] - The top gainers in the Shenzhen market included Yuma Technology, Green Island Wind, and Tianshan Electronics, with increases of 20.02%, 20.01%, and 19.98% respectively, while the biggest losers were *ST Dongtong, Haon Automotive Electric, and Zhongqi Automotive, with declines of 14.81%, 11.92%, and 11.79% respectively [6]

Industry News - The Ministry of Ecology and Environment reported that the cumulative trading volume of carbon emission allowances in the national carbon market reached 714 million tons, with a total transaction value of 48.961 billion yuan as of September 18, 2025. The number of environmental impact assessments for wind power and new energy vehicles increased by 44.4% and 31.3% year-on-year, respectively [4] - The State Administration for Market Regulation released 56 national metrology technical standards, including those for electric energy, providing a clear traceability path and technical specifications for direct current energy measurement, which will support the development of electric vehicle charging, high-speed rail operations, and photovoltaic power generation [4] - The National Energy Administration issued 271 million green certificates in August 2025, involving 306,500 renewable energy projects, with 155 million certificates available for trading, accounting for 55.99% of the total [5] - The first national standard zero-carbon park was awarded in Xiong'an New Area, marking a significant step in promoting zero-carbon development in the construction sector [5] Corporate News - China National Offshore Oil Corporation (CNOOC) successfully tackled world-class challenges in the development of offshore reef limestone oil fields, with the Liuhua 11-1/4-1 oil field producing over 700,000 tons of crude oil in its first year of secondary development [6] - The China Electric Power Construction Group's Gansu Survey and Design Institute was established in Guazhou County, aiming to enhance regional cooperation and promote economic transformation in western China [6] - LONGi Green Energy and JinkoSolar announced a joint statement to resolve patent litigation, marking a shift in the photovoltaic industry from price competition to technology-driven high-quality development [7] Local News - A new discovery of 760 million tons of coal resources was reported in the Pan San coal mine in Anhui Province, which will significantly boost the sustainable development of the Huai coalfield [8] - The Xinjiang Dashixia Water Conservancy Hub project officially began water storage, expected to generate over 1.8 billion kilowatt-hours of clean electricity annually, sufficient to meet the annual electricity needs of 650,000 households [8] - Jiangsu Province's largest user-side energy storage station, with a total storage capacity of 240 megawatt-hours, has been officially connected to the grid, marking a significant step towards near-zero carbon transformation for a traditional steel giant [8]

Investment Rating - The report maintains a "Positive" investment rating for the oil processing industry [1]. Core Insights - International oil prices experienced slight declines due to increased diesel inventories and upward adjustments in supply surplus pressure by organizations like IEA and EIA, despite favorable conditions such as crude oil inventory reductions and interest rate cuts [2][9]. - As of September 19, 2025, Brent and WTI crude oil prices were recorded at $66.04 and $62.40 per barrel, reflecting a decrease of 1.42% and 0.46% respectively from the previous week [2][28]. - The oil and petrochemical sector saw a decline of 1.99% in the week ending September 19, 2025, while the broader Shanghai and Shenzhen 300 index fell by 0.44% [10][13]. Summary by Sections Oil Price Review - Brent crude futures settled at $66.04 per barrel, down $0.95 (-1.42%), while WTI crude futures settled at $62.40 per barrel, down $0.29 (-0.46%) [2][28]. Offshore Drilling Services - The number of global offshore self-elevating drilling platforms was 372, a decrease of 2 from the previous week, while floating drilling platforms increased by 1 to 131 [32]. U.S. Crude Oil Supply - U.S. crude oil production was reported at 13.482 million barrels per day, a decrease of 13,000 barrels from the previous week [55]. U.S. Crude Oil Demand - U.S. refinery crude oil processing averaged 16.424 million barrels per day, down 394,000 barrels from the previous week, with a refinery utilization rate of 93.30%, a decrease of 1.6 percentage points [64][66]. U.S. Crude Oil Inventory - Total U.S. crude oil inventories stood at 821 million barrels, a decrease of 8.781 million barrels (-1.06%) from the previous week [75]. Finished Oil Products - In North America, the average weekly prices for diesel, gasoline, and jet fuel were $98.27, $84.52, and $87.49 per barrel respectively, with respective price differences from crude oil of $30.72, $16.97, and $19.93 [97].

Investment Rating - The report maintains an "Outperform" rating for the oil and petrochemical sector [1]. Core Viewpoints - Geopolitical risks in the Middle East and Ukraine are supporting oil prices, which are expected to remain volatile in the short term. The report notes that WTI crude futures saw a slight increase of 0.03%, while Brent crude futures decreased by 0.33% during the specified period [6]. - OPEC+ is pushing for increased production despite low international oil prices, aiming to regain market share, which may lead to further pressure on global oil supply [6]. - The demand side shows significant crude oil inventory reductions in the U.S., with gasoline also experiencing a drawdown, providing some support for oil prices. However, as the summer travel season ends, refined oil consumption is expected to shift from peak to off-peak [6]. - In the fluorochemical sector, popular refrigerants like R32 and R134a continue to see price increases due to tight supply and steady demand from downstream industries such as automotive and air conditioning [6]. - The report highlights the strong growth in China's automotive production and sales, which increased by 13.0% and 16.4% year-on-year, respectively, in August 2025, boosting demand for refrigerants [6]. Summary by Sections Oil and Petrochemical - Geopolitical tensions are providing short-term support for oil prices, with WTI and Brent prices showing mixed trends [6]. - OPEC+ discussions on production capacity are ongoing, with a focus on regaining market share despite low prices [6]. - U.S. crude oil inventory reductions and seasonal shifts in refined oil consumption are influencing market dynamics [6]. Fluorochemical - The market for refrigerants remains tight, with prices for R32 and R134a continuing to rise [6]. - Demand from the automotive and air conditioning sectors is supported by government policies promoting consumption [6]. - The reduction in production quotas for second-generation refrigerants is expected to tighten supply further [6]. Investment Recommendations - The report suggests focusing on the oil and petrochemical sector, fluorochemical sector, and semiconductor materials. It highlights the resilience of major domestic oil companies in the face of price volatility and recommends monitoring companies like China National Petroleum, Sinopec, and CNOOC [7]. - In the fluorochemical sector, companies leading in third-generation refrigerant production and upstream fluorite resources are recommended for investment [7]. - The semiconductor materials sector is also highlighted for its positive trends in inventory reduction and domestic substitution [7].

Core Viewpoint - The Yancheng "Green Energy Port" is China's largest LNG energy hub, showcasing significant advancements in clean energy and innovative technologies in LNG storage and utilization [1][4][14]. Group 1: Project Overview - The Yancheng "Green Energy Port" features ten giant LNG storage tanks, including the world's largest 270,000 cubic meter tanks, with a total capacity of 2.5 million cubic meters [4][13]. - The project has a total investment exceeding 10 billion yuan and can process over 6 million tons of LNG annually, equivalent to 8.5 billion cubic meters of gaseous natural gas, sufficient to meet Jiangsu province's residential gas needs for 28 months [4][9]. Group 2: Environmental Impact - The project is expected to reduce carbon dioxide emissions by 37.64 million tons and nitrogen oxides by 668,000 tons annually, contributing significantly to the goals of carbon peak and carbon neutrality [5][9]. - The environmental benefits are comparable to planting approximately 600 million trees or removing over 8 million cars from the road for a year [9]. Group 3: Economic Benefits - In September 2023, the port began LNG bonded operations, achieving bonded imports worth 5.332 billion yuan, and is projected to reach bonded exports of 3.645 billion yuan by mid-2025 [9]. - The port serves as a comprehensive green clean energy supply station, integrating LNG reception, storage, distribution, power generation, and cold energy utilization [9][14]. Group 4: Technological Innovations - The project boasts a domestic production rate of 98.3%, indicating mastery of core technologies in LNG tank design and construction, which has reduced construction costs and ensured operational safety [13]. - Innovative applications of LNG cold energy have been developed, including a cold energy exchange center and ice-making facilities, with plans to expand into various fields such as air separation and power generation [5][14].

Investment Rating - The report maintains a "Buy" rating for key companies in the oil and gas sector, specifically recommending China National Petroleum Corporation, China Petroleum & Chemical Corporation, China National Offshore Oil Corporation, Zhongman Petroleum and Natural Gas, and New Natural Gas [4]. Core Insights - The ongoing Russia-Ukraine conflict and the recent interest rate cuts by the Federal Reserve are expected to keep oil prices fluctuating in the short term. The Brent crude oil price peaked at over $68 per barrel recently, but has since retreated following the Fed's rate cut and the EU's price cap on Russian oil [1][7]. - The report highlights that the EU plans to intensify sanctions against Russia's oil sector, targeting various critical aspects of the global oil industry, although previous sanctions have had limited impact on Russian oil exports [1][7]. - The report anticipates that oil prices will remain supported by the Fed's ongoing rate cuts and OPEC+'s production increase plans, leading to a predominantly volatile market in the near term [1][7]. Summary by Sections Market Overview - As of September 19, the Brent crude oil futures settled at $66.68 per barrel, down 0.46% week-on-week, while WTI futures settled at $62.68 per barrel, down 0.02% [2][35]. - The U.S. crude oil production decreased to 13.48 million barrels per day, a decline of 10,000 barrels from the previous week, and the refinery throughput also fell by 390,000 barrels per day [2][8]. Inventory and Supply Dynamics - U.S. commercial crude oil inventories decreased by 9.29 million barrels to 41.536 million barrels as of September 12, while gasoline inventories fell by 2.35 million barrels [3][9]. - The report notes a significant drop in Russian oil exports due to drone attacks affecting key facilities, with estimates suggesting a reduction in refining capacity to below 5 million barrels per day [27]. Investment Recommendations - The report suggests focusing on three main investment themes: 1. Investing in leading companies with strong performance and high dividends, such as China National Petroleum and China Petroleum & Chemical [11]. 2. Considering companies with stable earnings and low production costs, like China National Offshore Oil Corporation [11]. 3. Monitoring companies in the growth phase of production, such as New Natural Gas and Zhongman Petroleum and Natural Gas [11]. Company Performance - The report indicates that the oil and gas sector underperformed compared to the broader market, with the sector down 1.9% as of September 19, while the Shanghai Composite Index fell by 1.3% [12][13]. - Notable stock movements include Baoli International, which saw a significant increase of 15.24%, while Bohui Co. experienced a decline of 7.02% [17][19].

Core Insights - The article highlights the innovative use of liquefied natural gas (LNG) in various applications, including food production and energy supply, showcasing its versatility and efficiency [1][3]. Group 1: LNG Overview - LNG, or Liquefied Natural Gas, is a clean and efficient energy source, with a liquid volume approximately 1/625 of its gaseous state, making it easier to store and transport [1]. - The China National Offshore Oil Corporation (CNOOC) Yancheng "Green Energy Port" is the largest LNG energy hub in China, with a storage capacity of 2.5 million cubic meters [1][3]. Group 2: Environmental Impact - The Yancheng "Green Energy Port" has an annual processing capacity of 6 million tons, equivalent to 8.5 billion cubic meters of gaseous natural gas, which can supply residential gas for Jiangsu Province for about 28 months [3]. - The facility contributes to significant emissions reductions, including a decrease of 37.64 million tons of CO2 and 668,000 tons of nitrogen oxides, along with the environmental benefit of planting 80 million trees [3]. Group 3: Trade and Economic Impact - In 2024, the "Green Energy Port" achieved a bonded import value of 5.332 billion yuan, with plans to expand LNG transshipment trade in 2025, targeting a bonded import and export value of over 6 billion yuan for the year [6]. - The port has streamlined customs and inspection processes, significantly reducing the waiting time for vessels at the terminal, thereby enhancing operational efficiency [6].