BP Plc and its Chinese partner plan to open 60 gas stations in Ningbo and 70 in Hangzhou this year as part of their deal to run 500 gas stations jointly in Zhejiang Province, the British company said in a statement yesterday.
The two sides set up a 2.2 billion yuan (US$265 million) joint venture in May last year to run the gas stations. Sinopec holds 60 percent while BP has the balance.
The British-based oil giant and China Petroleum & Chemical Corp, Asia's largest refiner and also known as Sinopec, opened their first unified branded gas station in Ningbo on January 10.
The agreement calls for the firms to jointly run 500 gas stations in the two cities and Shaoxing by 2007.
Besides providing fuel, the partners will sell gasoline, diesel, kerosene and lubricant through the gas stations and run convenience stores. Sinopec will be the sole oil supplier to the joint venture.
It's not the first time BP has entered the country's lucrative refined oil market.
BP has also teamed up with PetroChina Co, the country's largest oil firm, to run 500 gas stations in Guangdong Province by 2007.
So far, BP and PetroChina operate 383 gas stations in Guangdong with nearly 200 of them having a convenience store.
Royal Dutch/Shell and Sinopec have also jointly started running 213 gas stations in Suzhou as part of their plan to run 500 gas stations in Jiangsu Province.
China opened its retail refined oil market on December 11 last year as part of pledges made when it joined the World Trade Organization.
China is the world's second-largest oil consumer after the United States amid its rapidly growing economy thirsty for more energy.
The country's refined oil market is dominated by Sinopec and PetroChina.