China has granted import licenses for crude and refined oil to 17 companies, ending the domination of China Petrochemical Corp (Sinopec Group) and China National Petroleum Corp (CNPC), a report said Friday.
The Beijing Times said the companies, all domestic, included Tianfa Petroleum Co Ltd and Dalian Shide Group. It said they would probably only be granted small import quotas.
So far, only China Petrochemical Corp (Sinopec Group) and China National Petroleum Corp (CNPC) have been allowed to import oil.
The country imported 91 million tons of crude oil last year, a 31.3 percent increase over 2002. The government estimated at the beginning of the year that crude oil imports this year would rise to 100 million tons. In October 2003 the government opened its wholesales refined oil sector - previously reserved for Sinopec and CNPC - to Tianfa Petroleum. China promised to open its retail market for refined oil at the end of this year and the wholesales market at the end of next year to foreign-funded companies, under its commitments to the World Trade Organisation.
The newspaper said the opening of the refined oil market to domestic companies in advance would cushion the impact of foreign companies entering the sector.
Currently foreign companies help operate and manage about 2,000 gas stations in China through joint ventures with Sinopec and CNPC.