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French Oil Giant Starts Work on Shenyang Service Station
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French oil giant Total began construction of its first service station in Shenyang, northeast China's Liaoning Province, yesterday.

 

The company agreed to invest US$220 million in its joint venture with Sinochem Corp, a state-owned oil-trading company, to build a 200-station network in north China, and a 300-station network in and around Shanghai.

 

China committed to allowing foreign firms into the oil market as part of its accession to the World Trade Organization in 2001.

 

The retail business was opened at the end of 2004, allowing foreign companies to run a small number of filling stations directly or to operate larger networks with Chinese partners.

 

Foreign oil giants are eager to gain wider access to China's market, and several have already signed joint ventures with Chinese partners to build service stations across China.

 

"Foreign oil giants are trying to increase their share in China's retail oil market, which is now one of the fastest growing markets in the world," said Zhou Dadi, former director of the Energy Research Institute with the National Development and Reform Commission.

 

BP has set up a joint venture with Sinopec for 500 service stations to be built in Zhejiang Province, while another joint venture with PetroChina will operate 500 outlets in south China's Guangdong Province.

 

(China Daily October 31, 2006)

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