Chinese oil firms eye new-energy automobile field

China’s state-run oil firms CNPC, Sinopec Group, and CNOOC Group, are all eying the development of new-energy automobiles, signaling the country’s intent to develop its related industry. CNOOC Group recently invested five billion yuan (US$732.40 million) in Tianjin Lishen Battery Joint-Stock, a firm engaged in the production of lithium-ion batteries, especially for vehicles, to lay down 20 battery production lines. Sinopec primarily is focusing on the development of vehicles fueled by natural gas and hybrid engines, while CNPC is conducting research on vehicles powered by a gasoline-ethanol mix. CNOOC meanwhile is engaged in the manufacture of electric cars and building battery charging stations. According to China’s Ministry of Finance, China will invest 20 billion yuan (US$17.58 billion) by 2012 to promote the use of new energy engines. (November 17, 2009)