Business / Industries

Signs of further opening-up for oil, gas industry

By Du Juan (China Daily) Updated: 2014-02-25 07:29

There are more signs that China's oil and gas sector, traditionally dominated by the State-owned companies, will be more open to private capital following China Petrochemical Corp's announcement last week that it will open up 30 percent of its retail business sector.

Sinopec is allowing in private investors

Signs of further opening-up for oil, gas industry

Sinopec profit increases more than 10b yuan

The private steel company Guangzheng Group said on Friday it has signed a cooperation agreement with the corporation, also known as Sinopec, to jointly develop a natural gas business in western Xinjiang Uygur autonomous region.

According to the company's statement, it signed a strategic cooperation agreement with Sinopec's subsidiary South Western Tarim Exploration and Development Co to jointly develop downstream gas markets in five areas: Bayingolin, Kashgar, Hotan, Aksu and Kezhou in southern Xinjiang.

Last week, Sinopec said it will welcome private capital to invest in up to 30 percent of its oil retail business sector, including more than 30,000 fuel stations, pipelines and storage facilities, which is a big step toward State-owned enterprise reform.

The business unit the subsidiary opened for private investors also involves downstream assets. But Sinopec didn't make any comment officially about the deal.

An insider at the company, who declined to be named, told China Daily it is also considering making moves to introduce private capital in more sectors, in line with the central government's policy of encouraging private investment in State-controlled industries.

Wang Xiaokun, senior analyst at domestic commodities consultancy Sublime China Information Group Co Ltd, said it is not the first time that private capital participates in the downstream business of Sinopec.

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