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China: Six more companies granted oil product wholesale licenses

https://www.chemnet.com   Aug 02,2010
Six more companies have been granted oil product wholesale licenses by the Ministry of Commerce of PRC (MOFCOM), according to a notification released by MOFCOM on Jul 23.


These six companies are Jingzhou Branch of PetroChina Hubei, Xianning Branch of PetroChina Hubei, Wuxi Xishan Traffic Petrochemical, Guangdong Fuel Company, Shanxi Jinrong Petrochemical and Baotou Maochuan Petrochemical Marketing.


Among the six companies, only the former two are under the five state-owned majors CNPC, Sinopec, CNOOC, Sinochem or China National Aviation Fuel Holding. The other four are all owned by other state-owned enterprises or private.
More and more enterprises outside the fold of the big-five got oil product wholesale licenses since the second half of 2008, but they would have to encounter hardship in the market which was dominated by Sinopec and PetroChina, industry sources denoted. The competition would be fiercer in the future with the participation of large-scale state-owned enterprises like CNOOC and Sinochem International, the sources believed.


By far, a total of 129 companies have been qualified for oil product wholesale business since the promulgation of the Administrative Measures on Oil Products Market in December 2006. Among these companies, 35 or 27.13% are owned by CNPC, Sinopec, CNOOC, Sinochem and China National Aviation Fuel Holding; 94 or 72.87% are private or state-owned companies outside the five oil giants, with nine of them as Sino-foreign joint ventures.


The Ministry of Commerce granted at the same time two companies oil products storage licenses, according to the announcement. They are Zhejiang Dongheng Petrochemical Marketing & Storage and Tianjin Sanhe Zhongcheng Petroleum Product Marketing.
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