On 29 September, Total signed a second joint venture agreement with Sinochem, to set up a network of 300 service stations in the provinces of Jiangsu, Zhejiang and Shanghai, in Eastern China, with a global investment of around $100 million. This new joint venture (49% Total and 51% Sinochem) is subject to the approval of the Chinese authorities.
Total and Sinochem have been partners for over 10 years in one of the country’s main refineries, located in Dalian, in Northern China and, since 2004, in a joint venture to set up a network of 200 service stations in the provinces of Beijing, Tianjin, Hebei and Liaoning, also in Northern China. They are co-operating again for this new network around Shanghai. Sinochem is one of the four Chinese oil companies, specialising in logistics and trading, as well as chemicals manufacturing and trading.
“This investment builds on our co-operation in refining and marketing with Sinochem in Northern China”, said Thierry Desmarest, Chairman and CEO of Total, when the agreement was signed in Beijing. In addition to its interest in the Dalian refinery and the first joint venture in Northern China, Total is already active in the downstream sector, with service stations in the province of Hubei, lubricants sold under the Elf and Total brands, in liquid petroleum gas, specialty fluids, petrochemicals and specialty chemicals.