BP has signed joint venture (JV) agreements with Shandong Dongming Petrochemical Group to develop a retail fuels business covering the Chinese provinces of Shandong, Henan and Hebei.
Within a period of ten years, the partners are planning to increase the network to 500 sites
BP has a 49% equity share of the joint venture, while the remaining stake will be held by Dongming Petrochemical. Under the agreements, the partnership will commence operations this year
BP downstream chief executive Tufan Erginbilgic said: “New market growth is one of the key strategic priorities for BP’s fuels marketing business. Our retail business offers customers a differentiated experience through our brand, high-quality products and services.
I believe our strategic partnership will further promote the in-depth reform of the retail sector in China. This joint venture plans to create a modern retail fuelling network, delivering high-quality customer experiences and contributing to a safer, cleaner and more efficient industry in China.”
The collaboration allows the company to strengthen its retail presence in the country, in line with its goal to increase earnings downstream.
The company already has more than 740 retail sites in China’s Guangdong and Zhejiang provinces, operating through existing JVs.
Dongming Petrochemical Group chairman Xiangping Li said: “I believe our strategic partnership will further promote the in-depth reform of the retail sector in China.”
BP’s existing partners in the country include China National Petroleum (CNPC) and China Petroleum & Chemical (Sinopec).