BP, Sinopec plan $260m gas station deal

BP, Sinopec plan $260m gas station deal

SHANGHAI: British oil giant BP and China's Sinopec are awaiting government approval of a US$260 million gas station joint venture in the eastern province of Zhejiang, state press reported on Wednesday.

The two petro-chemical groups will renovate and build 150 gas stations annually in Ningbo, Hangzhou and Shaoxing in Zhejiang, with plans to expand the network to 500 stations within three years of operation, the Shanghai Daily reported, citing officials with both companies.

Sinopec will own 60 percent of the new company, BP-Sinopec Zhejiang Oil Company, the reports said.

China's gas retail market is scheduled to be open to foreign investors by the end of this year as stipulated under the country's commitments to the World Trade Organization (WTO).--AFP