Forbes: Shell, Sinopec Launch Gas Station Venture
“Royal Dutch/Shell and China Petroleum and Chemical Corp., have launched a joint venture to operate a network of about 500 service stations in eastern China’s Jiangsu province…”
Associated Press
08.31.2004
Royal Dutch/Shell and China Petroleum and Chemical Corp., have launched a joint venture to operate a network of about 500 service stations in eastern China’s Jiangsu province, one of the country’s fastest growing regions.
China Petroleum, also known as Sinopec, and Shell inaugurated the Sinopec and Shell (Jiangsu) Petroleum Marketing Co. Ltd. in the provincial capital, Nanjing, over the weekend after receiving government approval, the companies said in statements on their Web sites.
Sinopec will hold a 60 percent share in the 1.55 billion yuan (US$187 million; euro 154 million) joint venture, with Shell China Holdings BV and Shell (China) Ltd. holding 30 percent and 10 percent shares, respectively, Shell said.
It said 180 of the 500 joint venture gas stations, to be acquired or leased from Sinopec’s existing network, would be open by the end of 2004.
Sinopec will be the exclusive supplier to the venture.
Although it is withdrawing from refining and gas station businesses in markets where it anticipates low growth, Shell plans to raise its investment in China to US$5 billion (euro 494 million) from the current US$1.6 billion (euro 159 million), state media reported.
As part of a deal for the world’s three biggest oil companies to back Sinopec’s listing on overseas stock markets in 2000, Sinopec set agreements with Shell, Britain’s BP Amoco and Irving, Texas-based ExxonMobile to each operate 500 joint venture gas stations, state media reported.
BP is to operate stations in Zhejiang, which like Jiangsu is adjacent to Shanghai, China’s biggest city. ExxonMobile is to operate stations in Fujian, a southeastern coastal province.
Shell and Sinopec also have a coal gasification joint venture in Yueyang in central China’s Hunan province.
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