OIL

Oil majors break Chinese petrol monopolies

Royal/Dutch Shell and BP are to form separate ventures with China Petroleum & Chemical Corp by the first quarter of 2002 to build petrol stations in two of that country's richest provinces.

China's dominant oil refiner, Sinopec, plans to sign an agreement by the end of the year with Shell to build 500 petrol stations in Jiangsu, China's second richest province near Shanghai.

In the first quarter of 2002 BP is expected to agree to set up a chain in the coastal province of Zhejiang. One Chinese governor said BP plans to invest a total of $US5 billion in China including $1 billion in Guangdong province.

While this figure could not be confirmed, a BP official said the oil giant plans to invest $US500 million in China this year in both upstream and downstream businesses.

The breaking up of monopolies in China by the oil majors follows closely on the heels of Shell's breakthrough in Africa. In September, Shell won a tender to supply motor fuel to oil-rich Nigeria, breaking into the select club of private companies that normally dominate the trade.

Nigeria's four refineries produce only a fraction of their capacity of 18 million litres a day, forcing the world's sixth largest crude oil exporter to import motor fuel. Daily demand runs to about 25 million litres and the government intends to license more refinery operators to reduce Nigeria's dependence on imported fuel.

Staying in China, one of that nation's fastest growing provinces, Guangdong, has invited the North West Shelf partners to tender for a $20 billion contract to supply LNG. The consortium was one of seven asked to compete to supply three million tonnes under a potential 20 year contract period.

Some of NWS' competitors include suppliers from Iran, Malaysia, Qatar, Russia and Yemen. Guangdong's first receiving terminal is expected to be ready for shipments by 2005.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry