China National Petroleum Corp. (CNPC) said one of its flagship oilfields has injected more than one million metric tons of carbon dioxide in a single year, a milestone Beijing is highlighting as evidence that carbon capture and utilization technologies can be deployed at industrial scale.
The Xinjiang Oilfield, located in the Junggar Basin in northwest China, reached the threshold in 2025, according to the state-owned energy group. The project uses carbon dioxide to enhance oil recovery by injecting the gas into mature reservoirs, improving output while trapping a portion of the emissions underground.
CNPC described the achievement as a step toward aligning fossil fuel production with China’s carbon peaking and carbon neutrality objectives. The company estimates that injecting one million tons of carbon dioxide has a climate impact comparable to planting millions of trees, while also lifting oil recovery rates beyond what traditional water flooding can deliver.
Annual injection volumes at the oilfield have risen sharply in recent years, climbing from just over 100,000 tons in 2022 to the million-ton level this year. Cumulative injections now exceed two million tons. Company executives say progress came from overcoming technical barriers related to reservoir geology, CO2 supply and long-term storage safety.
Massive CO2 Storage Capacity Mentioned by CNPC
The Junggar Basin is considered one of China’s most important onshore energy hubs, and CNPC estimates that the surrounding production area could ultimately store up to two billion tons of carbon dioxide. The presence of nearby industrial facilities provides a ready source of captured CO2, supporting ambitions to build a regional carbon capture and utilization cluster.
Beyond Xinjiang, the announcement fits into a broader global push to scale CCUS. The International Energy Agency has repeatedly said carbon capture will be essential for meeting climate targets, particularly for heavy industry and existing fossil fuel assets.
China’s milestone suggests it is seeking to close the gap to efforts in the U.S. and Europe while using oilfields as both a climate tool and a pillar of energy security.
A recent analysis from Wood Mckenzie also suggested China may achieve capture costs as low as $30 to $40 per ton compared with more than $300 per ton in Europe, highlighting stark economic gaps in deployment.
Read more: China Claims Up To 90% Cost Edge In Carbon Capture
