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Inner Mongolia: another battlefield for oil giants

By Tu Lei (chinadaily.com.cn)
Updated: 2006-11-06 09:04

North China's Inner Mongolia Autonomous Region recently saw a fast increase in oil product consumption. Statistic show that the amount in 2006 is expected to reach 4.5 million tons, and the China National Petroleum Corporation (CNPC), the nation's top oil producer, controls 80 percent of the volume.

Currently, there are no foreign-funded oil enterprises entering Inner Mongolia, but the two oil giants, CNPC and China Petroleum & Chemical Corporation (Sinopec), Asia's biggest oil refiner, are competing fiercely there.

CNPC's Inner Mongolia branch set up an oil products company with Inner Mongolia Highway Co Ltd in 2003, which helps CNPC win all gas stations business along the 3,000-kilometer highway. In 2004, CNPC committed itself to promoting brand and enterprise image in some key cities, and in 2006, CNPC invested 14 million yuan (US$1.78 million) in building the a modern gas station that covered 6,482 square meters in Hohhot City.

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The full text is available in the November Issue ofChina Energy.