I am PetroChina CFO and Board Secretary Chai Shouping. On behalf of the company, I would like to welcome you to our 2020 results announcement. First, allow me to introduce the board directors and management members present today. Chairman Dai Houliang, Director and former President Duan Liangwei, Director and our new President Mr. Huang Yongzhang, VP Mr. Li Luguang, VP Mr. Tian Jinghui, and VP Mr. Yang Jigang. The announcement today includes four parts. First, review of 2020 financial performance and analysis. Second, 2020 operational performance and outlook for 2021. Third, chairman's remarks, and then a Q&A session. Now, I'll walk you through the company's 2020 financial performance.
In 2020, faced with the COVID-19 pandemic plunging international oil prices, sharp declines in oil and gas demand, PetroChina seized the opportunity as China became the first major economy to score a positive growth, leveraged the synergy of oil and gas industry chains, coordinated efforts in epidemic response and work resumption, vigorously boosted quality and efficiency, and achieved a rebound from losses in each one. Operational performance improved quarter by quarter, and annual results better than expected. 2020 revenue was CNY 1.93 trillion, down 23.2%. Operating profit CNY 75.937 billion, down 37.6%. Net profit attributable to parent CNY 19 billion. EPS 0.1 CNY. Based on the oil price changes, operational performance and cash flow, with flexibly adjusted investment size and structure, advanced key projects in a coordinated way. 2020 CapEx was CNY 246.493 billion, down 16.9%, which is generally reasonable and under control.
E&P, as a foundation of our development, remains a focus of investment. In 2020, CapEx for E&P was CNY 186.62 billion, 75.71% of the corporate total. In 2020, realized crude price averaged $40.33 per barrel, down 33.8% year on year. Realized gas price averaged $4.8 per MCF, down 10.9%. Amid plunging oil and gas prices, we continued to improve quality and efficiency, enhance cost control, and saw fruitful results. Lifting cost was down by 8.3%. Cash processing fee down 2.8%. SG&A down 6.2%. We properly arranged investments, strengthened asset management, and further optimized asset debt structure. Financial profile was sound in general. By December 31, 2020, total assets CNY 2.49 trillion, down 9% year on year. Interest-bearing debt CNY 368.921 billion, down 21% year on year. WACC interest-bearing debt 2.87%, down 0.78 percentage points. Debt ratio 45.1%, down 2.1 percentage points year on year.
Debt to capital ratio 21.3%, down 3.1 percentage points year on year. We emphasized on cash flow management. FCF scored large increase. Net operating cash flow CNY 318.575 billion, down CNY 41.035 billion, or 11.4%. FCF CNY 70.199 billion, up CNY 30.275 billion, or 75.8%, mainly due to tightened cash CapEx on the low oil prices. We'll continue to work on cash flow management and maintain a generally healthy cash flow to underpin our development. Now, a report on the performance of each segment.
Operating profit of E&P segment CNY 23.092 billion, down CNY 73 billion. Price changes of oil and gas products cut the profit by CNY 158.51 billion. Sales changes added to the profit by CNY 22.72 billion, including CNY 11.316 billion from higher crude sales and CNY 10.402 billion from higher gas sales. Lower OPEX and others added CNY 62.785 billion, including CNY 47.104 billion from lower purchase expense.
Less taxes except income tax added CNY 9.423 billion, including CNY 5.92 billion from less resource tax and CNY 593 million from less windfall tax. Operating profit of refining chemicals minus CNY 1.834 billion, down CNY 17.911 billion. Operating profit of refining business minus CNY 12.801 billion, down CNY 25.451 billion. Lower gross margin cut the profit by CNY 24.337 billion. Less crude run cut CNY 2.755 billion. Less other expenditures added CNY 1.641 billion, including CNY 760 million from lower SG&A and CNY 905 million from lower DD&A.
Operating profit of chemical business CNY 10.967 billion, up CNY 7.54 billion. Price changes of chemicals cut CNY 34.288 billion. Sales changes added CNY 20.189 billion. Less OpEx added CNY 21.639 billion, including less purchase service and others added CNY 18.866 billion, and less DD&A added CNY 671 million. Operating profit of marketing segment minus CNY 2.906 billion, flat year on year due to weak demand and fierce competition.
Operating profit of marketing arm in China was minus CNY 10.596 billion, still down CNY 1.783 billion. Lower margin cut the profit by CNY 1.955 billion. Lower sales cut CNY 3.996 billion. Less OPEX added CNY 4.168 billion. Operating profit of international trade CNY 7.69 billion, up CNY 1.755 billion. Operating profit of natural gas and pipeline CNY 72.41 billion, up CNY 46.302 billion. Operating profit of gas marketing minus CNY 338 million, with a sharp increase of CNY 12.751 billion. Contract price in China averaged $6.97 per MCF, down 6.7%. Profits from home-produced gas CNY 13.821 billion, down CNY 3.8 billion. Imported gas and LNG saw net loss of CNY 14.159 billion, reduced by CNY 16.551 billion.
Profit of pipeline business CNY 31.823 billion, down CNY 11 billion, mainly due to less pipelines after the transactions to PipeChina. Profit of city gas business CNY 7.146 billion, down CNY 1.596 billion. Profits from pipeline transactions and others added to the profit by CNY 46.149 billion.
COVID-19 and low oil prices brought much impact to our 2020 performance. Despite the difficulties, we remain committed to rewarding shareholders, considering our operation and financial performance, cash flow, and proceeds from pipeline transactions. PetroChina will pay out a year-end dividend of CNY 0.08742 per share, CNY 16 billion in total. Annual dividend amounts to CNY 0.17484 per share, CNY 32 billion in total. Payout ratio 168.4%. Now, let's welcome Director and President Mr. Huang Yongzhang for a 2020 performance review and the outlook for 2021.
Thank you, Mr. Chai Shouping. I am more than pleased to have the opportunity to report to you on the 2020 operational performance and 2021 outlook of the company. For PetroChina, 2020 has been extraordinary and challenging. Due to COVID-19, the world economy was in deep recession. Except for China, all major economies suffered varying degrees of negative growth.
In Q1, China reported an economic decline due to COVID-19, as the outbreak was brought under control. Work and production were resumed. China's economy bounced back into growth in Q2 and recovered quarter by quarter. Annual GDP growth was 2.3%. International crude prices suffered a free fall. International annual average price and our own average realized price both dropped drastically. Overcapacity and oversupply in China's refined product market are very prominent. Faced with unprecedented difficulties and challenges, PetroChina coordinated among epidemic control, work resumption, production and operation, and reform and innovation, strived to improve quality and efficiency. Operations along oil and gas industry chains maintained stable. Major production indicators grew steadily, and performance was better than expected. First, domestic explorations saw fruitful results. Oil and gas output scaled new heights. Second, overseas cooperation maintained steady progress and sound development.
Third, we further optimized refining and chemical business with new headways in cutting fuels and adding chemicals. Fourth, marketing segment ensured stable sales of oil products, facing smooth operation of the industry chain. Fifth, gas marketing business achieved increase in both volume and profits. Domestic explorations saw fruitful results. Oil and gas output scaled new heights. In 2020, PetroChina focused on risk exploration, promoted centralized exploration, optimized exploration, and efficient appraisal in key basins and belts with 38 important discoveries: Central Sichuan Basin paleouplift, Junggar Basin Duan Dong East Belt, Northern Tarim Basin superdeep layer, Songliao Basin Gulong Shale Oil. Altogether, four major strategic breakthroughs were made, giving shape to sizable reserves. Ordos Huanqing and Junggar Manan proved to be reservoirs of meaningful scale. For production, we focused on cost-effective facility building in new blocks and effectively controlled natural decline in old ones to enhance recovery.
In China, crude output was stable and increasing. Natural gas saw rapid growth of 9.9%. Share of natural gas continued to grow. Our production mix was further optimized, making major progress in green and low-carbon transition. Production of Changqing and Tarim oilfield companies exceeded 60 million and 30 million tons, respectively. Southwest Oil and Gas Field Company built a 30 BCM strategic gas province and the first 10 BCM per annum shale gas project in China. Overseas cooperation maintained steady progress and sound development. In 2020, PetroChina remained oriented on economics, improved overseas asset portfolio, business structure, and regional layout. We strive for risk exploration projects, operatorship projects, and gas projects. We focused on advancing Chad Dosseo Basin project, Niger Bilma Block risk exploration, and Kazakhstan Aktobe Central Block progressive exploration.
Production was smooth in general, with progress in new project development, joint venture and partnerships, and improvements in business layout and asset portfolio. Overseas output totaled 220 million BOE, up 0.2%, accounting for 13.3% of the corporate total. In 2020, crude production totaled 920 million barrels, up 1.4% year on year. Domestic production, 740 million barrels, up 0.6%. Market for natural gas, 4.2 TCF, up 8% year on year. Domestic production, 4 TCF, up 9.9%. Oil and gas equivalent totaled 1.63 billion BOE, up 4.1% year on year. We further optimized refining and chemical business with new headways in cutting fuels and adding chemicals. We gave continued priority to market economics, optimized resource allocation, and properly arranged utilization rate of efficient refineries. Crude run 1.178 billion barrels, down 4.1%. Output of oil products totaled 107 million tons, down 9.1%. Gasoline, kerosene, diesel down by 8.2, 21.1, and 7.2%, respectively.
We further optimized product mix. Based on market demand, we adjusted diesel-gasoline ratio to 1.1. We maximized utilization of chemical plants to yield more high-value-added products. Chemical commodities totaled 28.853 million tons, up 12% year on year. Ethylene 6.345 million tons, up 8.2%. Guangdong Petrochemical Project, Changqing and Tarim Ethylene Projects, and other key projects are well underway. Marketing segment ensured stable sales of oil products that braced the smooth operation across the value chain. We rose to the disadvantages of weak demand and high inventories. Timely adjusted marketing strategy, focused on retail and sales ramp-up to improve marketing operations and maintained the smooth operation of the oil industry chain. Sales of refined products totaled 161 million tons, down 14.1%. Gasoline, kerosene, and diesel were down by 13.5%, 32.3%, and 10.4%, respectively. Sales of oil products within China, 106 million tons, down 11%.
Gasoline, kerosene, and diesel were down by 8.1%, 4.2%, and 14.8%, respectively. We further expanded market network, strived to secure lucrative markets and high-quality stations in strategic areas. In 2020, our service stations totaled 22,619, up 254 year on year. International trade volume 397 million tons, down by 6.1% year on year. Gas marketing business achieved increase in both volume and profits. Against the grave challenge of demand slowdown, we employed multiple measures to enroll more users and targeted approach to increase sales. We pushed for more gas consumption from key areas and large users and operation startup of end-user facilities and direct supply users. Gas sales 248.7 BCM, down 4% year on year. Sales within China, 172.6 BCM, up 0.7%. End-user retail sales, 42.2 BCM, up 31.1%.
We optimized resource pool and allocation, strived for expansion in high-end and efficient markets, promoted online auctions, and saw hefty growth in profit. Construction of Tangshan, Jiangsu LNG terminals and other key projects is proceeding orderly. In line with market principles, we successfully completed pipeline transactions with high recognition from capital markets. On September 28, 2020, the proposal was approved in the general meeting with 99.99% votes in favor. On September 30, the company sold its major pipelines, some storage facilities, LNG terminals, and initial oil and gas, along with equities in relevant companies to PipeChina, in exchange for a 29.9% stake in PipeChina and a cash consideration. Assets in the transactions totaled CNY 356.45 billion, with CNY 200.23 billion of net assets attributable to the parent, the proceeds of CNY 46.95 billion pre-tax and CNY 33.03 billion after-tax.
The deal is of great significance to both the company and industry and serves to promote sustained and sound growth and improve the performance in the long run. PetroChina is China's largest gas producer and importer and one of the major sellers and service providers in the end-user market. We'll make full use of the national storage and transportation facilities, boost operation efficiency and value creation capabilities. PetroChina highlights green and low-carbon growth with sound sustainable development momentum. We value green, low-carbon, and sustainable growth. The HSE Committee under the board has been renamed as Sustainable Development Committee, responsible for supervising our sustainable development, including but not limited to ESG issues. In 2020, PetroChina saw fruitful results on ESG front. The share of gas in our production mix continues to rise, 47.2% in 2020, up 10 percentage points from 2015. Greenhouse gas emissions were down by 3.81% from 2019.
In 2020, we registered no COVID-19 infection in workplaces. We were awarded the enterprise for best practices in achieving SDGs in 2020 by UNGC, as we were awarded the National Awards of Poverty Alleviation by Chinese government for our innovation efforts. Our outlook for 2021. In 2021, we still face complex circumstances. COVID-19 is far from over, and the global landscape is undergoing profound changes with increasingly complex geopolitics. Oversupply in Chinese refined products market is even more acute, with further diversified players and the first competition in the gas market. That said, there are also many enabling conditions for PetroChina's growth. Global oil and gas demand is picking up amid economic recovery. As China enters into a new development stage, the strength of its mega markets will continue to unfold. The economy keeps positive momentum and is expected to grow over 6%, driving the domestic energy demand.
China's targets for carbon peak and neutrality bring new opportunities for green and low-carbon transition. National efforts to enhance reform and opening up expand domestic demand, improve business environment, and support real economy will create enabling environments for our growth. We are confident to bring new success to the high-quality growth of PetroChina. In 2021, the management team will follow through on the decisions of the board, focus on high-quality development, and vigorously implement the five strategies of innovation, resources, market, internationalization. Green and low carbon will highlight green and low carbon transition, advance ESG work, and ensure that added targets are completed. We will highlight efficient exploration and profitable development to stabilize oil output while increasing gas output and enhancing efficiency in domestic E&P, highlight structural adjustment and integrated growth to enhance profitability of refining, chemical, and marketing businesses.
We highlight the end-user market share and advance the integrated growth of gas and new energy. We highlight risk control and structural optimization to promote a sustained and sound overseas business, put innovation at the top of our strategies, and keep improving our independent innovation capacity. We will move farther to promote new energy layout and work well on ESG. These are our major operation statistics in 2020 and our production targets for 2021. For your reference, ladies and gentlemen, in 2021, PetroChina will follow through on the deployment of the board, strive to build a world-class international energy company, take the initiative, and forge ahead for greater performance, reward our shareholders, and give back to society with concrete actions. That's all. Thank you. Now, I'd like to invite Chairman Dai to give his remarks.
Dear investors and friends from the media, ladies and gentlemen, good afternoon.
It gives me great pleasure to join you in this teleconference. On behalf of the board, I'd like to thank you for your long-standing trust and support to PetroChina. Just now, the management team briefed you on our performance in 2020. In the past year, in the oil and gas industry, together with PetroChina, we have undergone an extraordinary and challenging process, a once-in-a-century pandemic and deep global economic recession. Coupled with the historic oil price collapse, we have sharply increased risks and challenges on various fronts and severely challenged the industry chain. The company was hit hard in H1 and went through the darkest period. Facing unprecedented difficulties and challenges, the board and management maintained strategic focus, boosted confidence, and employed our utmost measures in our utmost time. We worked all out with the entire staff in epidemic control and work resumption.
We worked to stabilize operation, enhance management, prevent risks, ensure security, and control the cost. We strive to improve quality and efficiency and managed to achieve better than expected performance in such an extraordinary year. In 2020, our oil and gas output maintained stable growth, domestic gas output up 9.9%, the largest increase in recent years, and a very large increase with a bigger share in the production mix and a more optimized oil and gas structure. Chemicals commodity up 12% year on year. With progress made in cutting fuels and adding chemicals with optimized structure, we enhanced marketing with comprehensive measures and kept up the smooth functioning of the industrial chain. We stick to market principles and completed pipeline transactions. With recognition from capital markets and shareholders, we have a 99.99% votes in favor at the general meeting.
A number of breakthroughs were made in science and technology, and positive progress was seen in green and low carbon and digital transformation. While the realized oil price was down by 33.8%, net profit attributable to the parent reached CNY 19 billion, free cash flow CNY 70.2 billion. PetroChina, we stood the test of severe challenges and achieved better than expected results. Based on our observation, at present and for some time to come, we face an important period of strategic opportunity for development, but new changes in both opportunities and challenges. As a result of technical advances and climate change, global economic transition is picking up speed, and it has become a new consensus to promote a green and low carbon energy mix.
Chinese government has made a solemn pledge to the world that it strives to carbon peak by 2030 and achieve carbon neutrality by 2060, which speaks volumes about its responsibility and resolve to address climate change and adjust industrial and energy structure. At present, global energy supply-demand dynamics is changing faster, and some new energies are developing actively. Oil prices climbed amid fluctuation after rebounding from the trough, and digital and smart technologies are reshaping the industry. It is crucial for PetroChina's future growth to seize opportunities and overcome challenges in a new context. The board thinks that the next five to 10 years is important to achieve energy transition and critical for PetroChina. Guided by five strategies of innovation, resources, market, internationalization, green and low carbon, and will especially focus on innovation, green and low carbon. We will harness reform and innovation as key impetus.
We pursue green development with reliable energy supply to fuel the growth of customers and power people's happy life. We promote adjustments and improvements and enhance management. We will keep improving operation efficiency, market competitiveness, and value creation capability to achieve more sustainable growth with higher quality, efficiency, and safety standards. PetroChina will remain committed to the future of an energy company. While growing oil and gas business will actually expand non-fossil fuels, and we will work faster to develop new energy, new material, and new forms of business to build a new paradigm with diverse energy sources. The board has passed a resolution to rename the HSC Committee as Sustainable Development Committee, which will be charged with sustainable development issues like ESG and strategic planning.
As for green and low carbon transition that draws much attention in the market, the board has drafted a three-step overall planning of clean alternative, strategic replacement, and green transition, and we are working on the timetable and pathways for carbon peak and neutrality at a minimum cost. We will strive to carbon peak around 2025, ensure that by 2035, green and zero carbon energy we supply exceeds the fossil fuels we consume, and achieve near zero emission around 2050, contribute our share to China's targets for carbon peak and neutrality and global climate ambition. The year 2021 marks the first year of the 14th Five-Year Plan period, and we'd like to feature this year by new look in the following seven axes and new philosophies.
First, we'll implement new development philosophies to promote the high-quality development of the company and try to open up new prospects in the following seven aspects. First, in science and technology, we stick to tech-driven development and underpin high-quality growth with high-quality technologies. Second, in improving qualities of oil and gas business, we'll endeavor to stabilize oil output while increasing gas output, improve gas proportion in our production mix, enhance coordination of refining, chemicals, and marketing businesses, and enhance gas sales increase in both volume and profits to optimize overseas business. And third, in deepening reform and adjusting structures, we'll optimize resource allocation and improve profitability of assets and enhance ROIC and further boost quality and efficiency.
Fourth, in green and low carbon transition, we'll strengthen general planning, green industry layout, energy saving, and emission cutting, and move faster to build a green industry structure and low carbon energy supply system. Fifth, in improving the corporate structure and governance, and continue to boost efficiency. Sixth, in preventing risks, we will effectively resolve risks in operation to keep production and operation stable. Seventh, in fostering talents, we will ensure relevant measures deliver practical results and underpin our high-quality growth with top-class personnel. The board has approved the appointment of a new president. Here, we'd like to thank Mr. Duan Liangwei for his hard work with the management team in the past year, and we hope the new management team led by Mr. Huang Yongzhang will pull efforts, stay focused to surmount difficulties, and scale new heights.
Ladies and gentlemen, dear friends, new look, new philosophies, cause for new actions. We have embarked on a new journey to build a world-class international energy company. We will focus on both long-term and short-term, seize the strategic opportunity of global economic transition, and work faster to build up strength, increase development, and strive for better performance. I hope PetroChina can enjoy your continued support along this journey, and we wish to build and share a bright future of sustainable development with all of you. Thank you.
Thank you, Chairman Dai. Just now, we have briefed you on the annual results. Now, we will have a Q&A session with consecutive interpreting available. To give more people a chance to ask, each please raise no more than two questions, and first, inform which institution you represent. And now, the floor is open for questions.
[Foreign language] Ladies and gentlemen, please press star one for questions. Thank you. [Foreign language] Neil Beveridge AllianceBernstein.
Thank you very much for the presentation. This is Neil Beveridge from Bernstein. Just a couple of questions from me. Firstly, on the green development plan, what sort of level of CapEx do you think you'll be allocating to non-fossil fuels over the next few years? When you look at the low carbon technologies such as wind, solar, hydrogen, or geothermal, what opportunities do you see as having the most attractive returns, and what will PetroChina focus on? The second question is around the gas business. So gas demand continues to be very strong in China. Last year, you had exceptional growth, close to 10%. This year, growth is going to slow to 3%.
What are the reasons for the slower growth this year, and what is the limit to increasing gas production growth to a higher level? Thank you. [Foreign language] I'm Dai Houliang, Chairman of the company. To answer your first question, the company is now preparing a pathway to achieve green development, and we have set three steps. First is we will utilize the green attributes of natural gas resource and to utilize PetroChina's advantage in natural gas production to rapidly enhance production of natural gas. And we aim to increase the proportion of natural gas in our total production to 55% by 2025, a leading position in the industry.
[Foreign language].
Second, we will fully utilize the role of natural gas in supporting the future energy system, and we will make the use of abundant resources within our mineral rights, including wind, solar, and geothermal, to implement the integrated development of wind power, solar power, and gas-fired power, and to achieve industrial utilization of hydrogen. We also aim to enlarge the scale of development of geothermal resources and its comprehensive utilization in order to build the company into an integrated energy company providing oil, gas, heat, power, and hydrogen resources. [Foreign language]. Third, we will press ahead with our Green Enterprise Action Plan to forcefully implement programs on energy conservation, emission reduction, and clean alternatives to try to cut our carbon emissions. We will rely on CCUS and try hard to remove the carbon in the process.
We not only try to achieve our peak carbon targets but also try to provide clean and zero carbon energy to the society. [Foreign language]. As for the proportion of new energy in our total CapEx, currently speaking, we are at the planning stage, but we foresee incremental CapEx each year. In order to achieve our green and low carbon targets, the proportion of new energy in our total CapEx will increase in the following years. [Foreign language]. As for the technological advancement in the new energy area, there are already some technologies connected with our main business. For instance, in the geothermal development, PetroChina already obtained some mature technologies, and we also have relatively mature technologies in wind, solar, and heat power, etc.
In the future, we plan to rely on our independent innovation and also introduction of technologies and also the joint venture opportunities with other partners to enhance our technological advancement in the new energy area. [Foreign language]. As I just reported, the HSE Committee under the Board of Directors has now been renamed the Sustainability Committee. As a responsible corporate citizen, PetroChina will aim to achieve our green and low carbon targets to fulfill our responsibilities, and we believe we can fulfill our targets. Thank you. [Foreign language].
I'm Huang Yongzhang, President of the company. I thank you for your question. Natural gas is a very important topic. I thank you for your attention paid to the natural gas business development of the company.
Generally speaking, along with the recovery from the pandemic globally, along with China's expansion in domestic demand and implementation of environmental-related policies, we believe the natural gas demand in China will have strong momentum of growth. And for this year, we think the natural gas demand will grow rapidly, and its growth rate will recover. Generally speaking, the natural gas market in China is loose. And in terms of the consumption volume, we estimate it to be 350 BCM, up by 8.7%. In the 14th Five-Year Plan period, along with the implementation of the carbon peak and carbon neutrality targets in China, we think natural gas demand will increase on average by 5.7%. And by 2025, the consumption is estimated to be 420 to 440 BCM. [Foreign language] For PetroChina, natural gas business is a value creator and a growth driver.
It is an important tool for us to achieve green and low carbon development. Our Chairman just elaborated on natural gas business, and in the future, we will, under the guidance of the Board of Directors, further accelerate the development of our natural gas business, consisting of production, supply, storage, and marketing segments, to build PetroChina into a world-class integrated natural gas supplier and supplier of green energy. [Foreign language]. First, we will enhance our efforts in natural gas exploration and production to increase the reserves of natural gas and ramp up its production. In the 14th Five-Year Plan period, we plan to add annually proven natural gas reserves of 600 bcm, and we try to achieve effective production establishment in new fields and to stabilize the production and efficiency in maturing gas fields.
By 2025, our natural gas production is targeted to reach 150 bcm, and the upper target is 160 bcm. [Foreign language]. Second, in order to ensure stable supply, we will work on the development of our storage capacities. We will accelerate the existing gas storages to reach its full capacity and steadily promote the construction of new storage capacities, and we will complete the expansion of the existing LNG terminals, accelerate the preliminary work of new LNG receiving terminals to steadily enhance our gas storage and peak shaving capability. [Foreign language]. Third, the company will enhance resource organization and explore the opportunities in natural gas-fired power generation. We'll expand direct sales and the retail size.
Importance is focused on the key areas and efficient markets, which are every effort to expand the sales and efficiency, and we estimate to increase our natural gas sales volume, increase it to 250-260 BCM by 2025, about 60% roughly in the Chinese market, and we aim to increase our direct sales to reach 30%. [Foreign language]. Fourth, as the shareholder of PipeChina, we will actively coordinate with PipeChina to accelerate the construction of trunk lines. In order to meet the transportation requirements of our imported gas, increased gas production in domestic gas fields and gas storages, we'll work with PipeChina to promote the preliminary planning and construction of long-distance pipelines. [Foreign language]. I hope I have made my points clear. Thank you. [Foreign language]. With Credit Suisse, I've got two questions.
First, we've noticed a substantial input gas loss reduction in the year 2020. I'm wondering about any more detailed information could the company disclose, and what about the reasons behind it, and what's the outlook for the next two years? The second question is around your crude oil reserves. We've noticed a 28% decrease in your reserve of crude in the year 2020, and what's the reason behind it?
[Foreign language]. I'm Chai Shouping, CFO. In the year 2020, the loss from imported natural gas was CNY 14 billion, a substantial reduction of CNY 16.5 billion. It's mainly due to the collapse of crude prices, which has brought down the import price of natural gas. [Foreign language]. Looking forward, we will also focus on the natural gas cost reduction from the perspectives of input volume, the input structure, and the sales price hike. [Foreign language]. I invite Mr. Li Luguang.
Li Luguang, Vice President of the company, to answer your second question. [Foreign language]. I thank you for your attention, paid to company's reserves. [Foreign language]. Last year, based on the SEC standards, we had proved reserves of 2.423 billion tons. [Foreign language]. As you know, the company's crude oil reserves is closely linked with crude prices, and last year the international crude price fell down very substantially, and it has brought down our reserve by 294 million tons. [Foreign language]. Under the low oil price environment, with the guidance of the Board of Directors, PetroChina will focus on three aspects to deal with the reserve reduction. First is to focus more on the quality of our newly added proven reserves, and second, to focus on the recovery of maturing oil fields, and third, to try every effort to contain the costs.
Based on the SEC standards, PetroChina is outperforming our peers in this regard. [Foreign language]. Reserves is the fundamental resource base for the company's sustainable development. Looking ahead, under the guidance of the Board of Directors, we will highly pay attention to the recovery of our reserve replacement ratio and to ensure it is above 1. [Foreign language] . First, we will focus on efficient exploration to enhance our reserve volumes and to ensure the enhanced reserve is efficient. [Foreign language]. And second, we will rely on technological innovation, especially the technologies in recoveries, to enhance the reserve of aging oil fields.
[Foreign language]. Third, we will press ahead with our special action plans on enhancing quality and efficiency to try every effort to cut the crude production costs in order to bring up our reserve numbers. [Foreign language] Thank you. [Foreign language]. In the interest of time, one last question, please.
[Foreign language]. With Bank of America, with plummeting crude prices last year, the company's performance is quite sound. I have two questions. The first is, over the years, the company's measures in cost reduction have been quite effective, and last year the company's lifting cost was down by 8%. So this year, along with the increasing of crude prices, what's the company's guidance on the cost per barrel, and what measures will the company take to further contain the costs? Second is, the company has given a very detailed guidance on your production outlook. Under the context of carbon peak in China by 2030, how do you look at the crude demand in China, and what's your crude production estimates in the following 5 to 10 years? Thank you.
[Foreign language]. I'm Chai Shouping, CFO.
For the first question, in the year 2020, the company has made tremendous efforts to enhance the quality and the efficiency of our development. We have made an excellent job in cost reduction. [Foreign language]. The company's capital expenditure last year went down by 16.9%, operating costs down by 8%, the unit cash operating cost down by 2.6%, and personnel cost down by 4.4%. [Foreign language]. The effort has been quite effective, and our program on enhancing the quality and efficiency has contributed RMB 21 billion to the company last year. 2021. [Foreign language]. This year, 2021, with the guidance of our chairman, we will also continue with our programs to enhance quality and efficiency. [Foreign language]. Efforts will be made to cut costs in different areas. [Foreign language]. We estimate to cut the controllable costs by 3%-5%. Thank you. [Foreign language].
I'll hand over to Mr. Duan Liangwei.
Duan Liangwei, the former president of the company, to answer your second question. [Foreign language].
We estimate in the following 10 years the demand of refined petroleum products will reach its peak and then decline. [Foreign language]. We believe the demand for crude oil has already entered a plateau stage, but we foresee increasing demand of natural gas. [Foreign language]. We estimate natural gas consumption in the year 2021 will be 350 BCM, up by 8.7%. [Foreign language]. We believe during the 14th Five-Year Plan period the natural gas demand will increase by 5.7% on average, and by the year 2025 the total consumption will reach 420-440 BCM. Thank you. [Foreign language].
In the interest of time, that's the end of our today's result announcement, and tomorrow we will hold the one-on-one meetings, and you may refer your questions to the Board Secretary. Thank you.