Shaanxi Yanchang Petroleum (SH:600248) and Royal Dutch Shell's (LON:RDSA) joint venture plan to build 100 petrol stations in the northwest Shaanxi Province, the Dutch oil company announced yesterday after launching it 10th station in the province.
Shell and Yanchang, China's fourth-largest oil producer, formed a 45-46 joint venture last year to construct and operate the stations. The remaining 9 percent is held by Shaanxi Tianli Investment.
Yanchang, affiliated to the Shaanxi provincial government, is one of only four companies qualified to explore for oil and gas in China.
Shell is competing with other foreign companies such as BP, Exxon Mobil Corp and Total SA who are also setting up networks of service stations in the world's largest auto market.