China Trade Information

China’s oil giants, China Petroleum & Chemical Corporation Ltd (Sinopec)<600028><386> and PetroChina<601857><857>, inked a framework cooperation agreement to supply crude oil to each other next year, the Shanghai Daily reported.

The move aims at ensuring the national energy security and a stable market supply, according to a statement released by the Sinopec Group, which is responsible for major part of imports of gasoline and diesel in China. However, further information on the deal is not available at present.

Through their respective advantage on marketing and resources, the two companies expect to jointly deal with the global financial crisis. Sinopec focuses on downstream refining, while PetroChina is good at upstream oil exploration, sources reported.

China National Petroleum Corp (CNPC), parent of PetroChina, said it has approved five major investment plans including a crude oil pipeline network between 2009 and 2020, natural gas pipelines as well as refining and chemical projects.

Those projects above are likely to bring returns in the long term, said CNPC, without providing detailed information.

Tags: CNPC, PetroChina, Petroleum, Sinopec

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