• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 4 hours China's Blueprint For Global Power
  • 1 min Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 2 hours IMO 2020:
  • 1 hour World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 9 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 9 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 6 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 2 hours Deepwater GOM Project Claims Industry First
  • 9 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 11 hours Why don't the other GOP candidates get mention?
  • 11 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 10 hours PETROLEUM for humanity 
Alt Text

The Only Hope For Oil Markets

While WTI was trending higher…

Alt Text

Iran Claims To Have Video Evidence Of Oil Tanker Attacks

An Iranian National Security official…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Is China Creating A $100 Billion Energy Giant?

As China wants to reduce the number of its state-held firms, the government plans to merge chemical groups Sinochem and ChemChina to create a global oil and chemicals giant worth around US$100 billion in annual revenues, Reuters reported on Friday, citing three people in the know.

ChemChina, which goes under the official name of China National Chemicals Corporation, is expected to boost Sinochem’s oil refining business with around 500,000 barrels per day of crude oil processing capacity.

Sinochem, on the other hand, has been facing a slowdown in its overseas oil and gas business with the lower-for-longer crude prices. Its energy business has also been stagnating amid growing Chinese competition from state oil trading company Unipec and from Chinaoil.

A ChemChina spokesperson has commented on the Reuters report of a potential merger, saying “there is no such thing”.

According to one of the Reuters’ sources, a possible merger would be beneficial to both companies, as Sinochem’s upstream oil and gas would supply ChemChina’s nine refineries. In addition, the two companies would complement each other’s rubber, chemicals, agri-chemicals, and fertilizer businesses.

A merger would create a major global giant and compete with domestic rivals PetroChina, Sinopec and CNOOC, Michal Meidan, an analyst on China at Energy Aspects, told Reuters.

Regarding the domestic rivals, state-owned oil companies PetroChina and Cnooc reported in August dismal first-half results, dragged down by low oil prices and stagnant demand at home. The companies’ outlook for the near term was not very bright either.

Commenting on the possible Sinochem-ChemChina merger deal for Bloomberg, Suresh Sivanandam, a senior manager of refining research at Wood Mackenzie in Singapore, said:

“This is probably part of the government’s energy reforms to consolidate smaller players and put them head to head with the bigger state refiners.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play