According to the Taiwanese company.CPC Corp., the state-owned petroleum, natural gas and petrol retailer from Taiwan, has been assessing joining hands with China National Petroleum Corp. (CNPC) to open 200 gas stations in Fujian Province, southeastern China,
CNPC Petrol Station CPC Petrol Station
A good quantity of Taiwanese companies has been well-recognized in Fujian has planned to explore the market by running fuel stations locally.That is the reason why the two companies plan to coorperated. Given the fact that most gasoline and diesel needed in Fujian are transported distantly from northeastern China at high transport costs, it is CPC’s good make strategies, which will make make its petroleum products, shipped from Taiwan much shorter distances, more price competitive than rivals in the market.
In fact, the two companies have signed a memorandum of understanding in 2010, and they are worked closely since then. They are going to set up a joint venture to run gas stations under a collective brand in Fujian, which has yet to be seen in Taiwan’s petroleum industry.
The cooperation plan remains on the drawing board for the time being, because this will have to wait for the approval by Taiwan’s Ministry of Economic Affairs. But, once it is done, this plan will make sales turnover of about NT$40 billion for both sides in the future reportedly.