|PetroChina, Sinopec wade into electric power business
(People's Daily Online)
China's two oil giants, PetroChina and Sinopec, have expanded their oil business to encompass electric power. After PetroChina Daqing Oil Field launched its electric power company, Sinopec Henan Oil Field also received an electric power business license. The license is Sinopec's first, marking a significant transition.
Before 2015, only electric power plants and companies could be licensed. However, as electric power reform has deepened, China has opened the door for all qualified enterprises to enter the business. Daqing Oil Field Electricity Co., Ltd. now possesses the largest power distribution network in China. Its establishment can boost regional economy and reduce electricity costs.
Analysts have pointed out that the two oil giants have favorable conditions to share the reform dividends. Thanks to the new reform, China has accelerated its marketization of electricity; over 1,000 power companies have been set up since the beginning of 2016. Besides established brands, many new firms have also flocked to get in on the booming business.