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Sinopec Establishes Natural Gas Subsidiary

China Petroleum and Chemical Corporation (Sinopec), China's biggest oil refiner, announced Wednesday that a natural gas subsidiary was set up in Beijing Monday.

It signifies that the natural gas business of Sinopec has entered a new phase since it established the strategy of expanding the natural gas sector, said a senior official of Sinopec.

Sinopec has seen its business expanding steadily in recent years. Its natural gas output reached 5.8 billion cubic meters in 2004. And in the first quarter of 2005, Sinopec saw an output of 1.469 billion cubic meters, 5.3 percent higher over the same period of last year.

According to the official, after the new company goes into operation, it will orient its natural gas business to the market. By integrating the allocation of resources, pipeline construction and market operation, the company aims to optimize the structure and factors of production to enhance its competition ability in the international market.

(Xinhua News Agency June 9, 2005)

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