BP has entered into joint ventures with Shandong Dongming Petrochemical Group (Dongming Petrochemical) to develop a fuel station and retail business in China.
The partnership is set to start operations this year, with the network expected to grow to 500 sites within 10 years in the provinces of Shandong, Henan and Hebei.
BP holds a 49% share in the joint venture and Dongming Petrochemical holds the remaining 51%.
Tufan Erginbilgic, BP’s chief executive for Downstream, 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.
“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. Building our retail presence in China supports our goal to grow our earnings in the Downstream.”
The deal will add to BPs 740 current retail sites in China through existing joint ventures, which serves 400,000 customers and selling over 12 million litres of gasoline and diesel every day.
Dev Sanyal, BP’s executive vice president regions, including Asia, said: ““China offers exciting opportunities for growth for the BP group.
“Dongming Petrochemical are a strong local partner and we are pleased to be working with them to expand our footprint into Shangdong, Henan and Hebei, which are among the fastest-growing Chinese provinces.”
“I believe our strategic partnership will further promote the in-depth reform of the retail sector in China,” Xiangping Li, Chairman of Dongming Petrochemical, commented: “I also look forward to a sound development of mutual benefit and complementary advantages.”
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