Sinopec’s purchase in October of half of oil tank firm Vesta Terminals takes China one step closer towards creating its own super majors as the state uses its $3.3tn cash pile to increase its influence over the world market.
The deal with Swiss trading house Mercuria helps state-owned Sinopec increase the profitability of its oil products and gives it extra leverage in the vital Amsterdam-Rotterdam-Antwerp (ARA) trading hub at the heart of northwest Europe.
Sinopec and its powerful trading unit, Unipec, will use the tanks to optimise trade in gasoil (heating oil and diesel) and gasoline and position itself for future oil flows.
The Vesta purchase is one small piece of a giant jigsaw slowly being fitted together to allow Sinopec and fellow Chinese state oil company CNOOC to compete against Western traders and majors such as ExxonMobil and Royal Dutch Shell.
“Chinese companies (are) seeking to build access to European trade as part of their attempt to replicate the global reach of IOCs (international oil companies),” said Robert Turner, a director specializing in refining at consultancy PwC.
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