Sinopec, BP Agree to Stronger Cooperation in Fuel Sales, Trading

BP, opens new tab and Chinese state oil major Sinopec, opens new tab signed a memorandum of understanding at the World Economic Forum in Davos to strengthen cooperation in areas including fuel sales, oil and gas trading, and upstream activities, according to a post on Sinopec's Weibo account on Thursday.

The two companies will also explore potential cooperation in low carbon sectors such as new energy vehicle (EV) charging.

Both Sinopec and BP have been looking to expand their share of China's rapidly growing EV charging market. BP signed an agreement with Chinese ride-hailing platform Didi to establish a charging joint venture in 2019, and Sinopec has announced a target to build 5,000 charging stations by 2025.

BP already operates fuel stations in China through joint ventures with Sinopec and Chinese state-owned oil major China National Petroleum Corp (CNPC).

BP has extensive interests in China beyond its retail fuel station network, including in jet fuel supply, lubricants, and oil and gas trading. The company is also a shareholder in an LNG receiving terminal in southern China, signing LNG supply contracts with several Chinese state-owned utilities and energy companies, including Sinopec.

BP and Sinopec have also been partners in a marine fuel bunkering joint venture in Singapore since 2015. Reuters

January 18, 2024