Oil giant Sinopec sets up entity to invest in overseas refineries as it eyes global expansion in the face of waning Chinese demand
- The global push by Asia’s largest refiner comes as China limits approvals of new refineries at home amid slowing demand growth and overcapacity
- One such investment could be in Sri Lanka, where Sinopec was shortlisted to bid for a refinery in Hambantota potentially worth billions of dollars
After a quiet launch in late June of Sinopec Overseas Investment Holding as its sole platform for investing, building and operating refineries abroad, Sinopec is building up the team and setting the budget for the new entity, two company officials told Reuters.
Sinopec will “expand overseas refining and chemical business by taking full advantage of the group’s core strength”, Zhao Dong, president of parent company, China Petrochemical Corp, was quoted as saying in late June when Sinopec announced the new entity in an in-house newsletter.
Sinopec declined to comment to Reuters on the specific regions or assets it is targeting, but a senior company official, who declined to be named as he is not authorised to speak to the media, said Sinopec will prioritise locations where demand is growing and feedstock is easily accessible.
