China Knowledge reported that Sinopec and PetroChina Co Ltd have each won the bid for a piece of land in Beijing to build a gas station.

Sinopec acquired a parcel for CNY 80.4 million or CNY 804,000 per square meters of potential floor area in Xiaohongmen Village, Chaoyang District, and PetroChina purchased a parcel for CNY 80.6 million or CNY 403,000 per square meters of potential floor area at Qijia Town in Changping District.

According to the Beijing Land Arrangement and Storage Center, the city will sell another three parcels for gas stations this year.

A general manager of a private oil firm said that it is hard to afford the parcels which have an amazing price exceeding CNY 800,000 per square meters of potential floor area, and that a gas station will only earn back the price, excluding construction costs, if it sells more than 10 million liters of gasoline at CNY 6.43 per liter.

On September 26th Sinopec signed a strategic cooperation agreement to invest CNY 2 billion in Nanning, Guangxi Province in the next three years. The oil giant will use the funds to build 100 gas stations, oil depots and an oil pipeline that will run from Nanning to Baise.

(Sourced from China Knowledge)