TOTAL, the French energy giant, aims to more than double the number of its joint venture gas stations with Sinochem in east China by the end of the year as it accelerates expansion, its China head said.
Total and state-owned Sinochem have formed a 49-51 venture with an aim to build or acquire 300 pump stations in Shanghai and Zhejiang and Jiangsu provinces by 2011.
So far, about 15 pump stations have started, according to Jacques de Boisseson, chairman of Total China. "We want to more than double the figure before the end of the year. The pace of opening service stations is accelerating," he said.
Total is catching up with foreign energy firms such as Royal Dutch Shell and BP to expand in China's mass oil retail markets.
This is despite the fact they still have to rely on a limited number of authorized fuel wholesalers for supplies and face pump prices that are capped by government.
Boisseson said its fuel distribution in China was a "low-margin" business but still profitable, adding that the key problem was supply.
A fuel shortage has hit China recently with independent refineries cutting back on production to stem losses from record high crude oil prices.
Boisseson said there were some "difficulties" at present in securing supplies.
Total has another fuel venture with Sinochem in the north, which plans to set up 200 fuel stations in Beijing, Tianjin, Hebei Province and Liaoning Province.
The first Total-Sinochem station in Shanghai opened last year, becoming the first foreign-backed one in the city.