China issues oil distribution, storage licenses

China’s Ministry of Commerce declared the first batch of licenses for distribution and storage of crude oil, after Beijing deregulated China’s oil distribution and storage markets on January 1, as part of its commitment to the World Trade Organization. However, the dominance of Sinopec and PetroChina remain unchallenged, with Beijing still mandating that the two oil giant remain the ultimate crude buyers. Both Sinopec and PetroChina were reaffirmed with crude storage licenses. In addition, the ministry also issued licenses for wholesale refined products to six companies. Five companies were awarded with licenses for storage of refined products. (July 31, 2007)