Shell establishes retail JV in Southwest China

Royal/Dutch Shell Group�s Shell China Co. Ltd. and Shell China Holding Co. Ltd. have formed a joint venture with China�s Sichuan Economic and Trade Development Center as part of a program to expand Royal Dutch/Shell's retail fuel business in Southwest China.


BEIJING� Royal/Dutch Shell Group�s Shell China Co. Ltd. and Shell China Holding Co. Ltd. have formed a joint venture with China�s Sichuan Economic and Trade Development Center as part of a program to expand Royal Dutch/Shell's retail fuel business in Southwest China.

The two Shell companies hold a combined 70% of the JV, called Sichuan Shell Oil Co. Ltd. The new firm has an estimated value of $8.7 million.

The joint venture soon will begin building gasoline stations along highways in Sichuan province.

China�s regulations now limit participation of foreign companies in retail stations in China, but exceptions are given to those investing in highway construction. China has committed to opening its oil retail market to foreign participation after it joins the World Trade Organization later this year.

Shell currently operates 38 gasoline stations in Guangdong, Beijing, Jiangsu, and Hubei. Of China�s 88,000 gasoline stations, foreign companies own about 300.

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