Taipei, (CNA) State-run oil refinery CPC Corp. Taiwan is planning to open 200 gas stations in China’s Fujian Province by 2014 at the earliest through a joint venture, a company executive said Monday.
The company plans to enter Fujian’s market in a venture with China National Petroleum Corporation (CNPC) in which it will hold a 49 percent stake and sell fuel using a “dual brand strategy,” said Li Chih, a CPC Corp. marketing executive.
China plans to add 1,500 gas stations in the province as part of its 12th five-year plan, which could help CPC Corp. extend its presence to Fuzhou, Xiamen, Zhangzhou and other cities, Li said.
CPC Corp. wants to expand into China because of the small scale of Taiwan’s market and its small margins on gasoline sales, kept down as part of the company’s mission to keep prices down for the benefit of the general public, Li said.
The project proposal still requires the review and approval of Taiwan’s Ministry of Economic Affairs, Li said.
Liu Ming-chung, executive director of the Ministry of Economic Affairs’ State-owned Enterprise Commission said the decision to approve the project will depend on its economic benefits and require consultation across government agencies.
CPC Corp., which estimates the cost of building one gas station in the province at NT$20 million (US$666,999), will need to submit an evaluation of potential economic benefits from the project prior to the review, Liu added.
(By Lin Meng-ju and C.J. Lin)