CNOOC may build electric-car battery network nationwide

China National Offshore Oil Corp. (CNOOC) is considering the possibility of building a network of battery-charging stations for electric cars nationwide, according to a report form the Wall Street Journal Tuesday.

CNOOOC's director of corporate strategy Shan Lianwen said since the company cannot manufacture cars, it can provide energy. Electric car drivers will be able to charge their batteries at the stations nationwide when the network is established, he was quoted as saying in the WSJ report.

The feasibility of this program rests on whether the electric car is popular enough to sustain new business, Shan said. If the oil price remains at above eight yuan per liter ($4.44 per gallon), or 20 percent higher than the current price, Chinese consumers would buy electric cars. Another factor influencing the success of the business is manufacturers being able to produce cheap but good-quality batteries, Shan added.
 
CNOOC is confident that Chinese consumers would buy electric cars as substitutes to fuel-consuming sedans when traveling within cities or in short-distances, Shan said.

In response to the country's call to reduce greenhouse gas emissions and decrease the reliance on the overseas oil supply, China’s oil companies are conducting various projects on alternative energies.

In July this year, CNOOC invested 5 billion yuan ($732 million) in cooperation with Tianjin Lishen Battery Joint-Stock Co., aiming to set up 20 battery production lines in Tianjin's new plant. In addition, the company is building an offshore wind energy project.

Meanwhile, China National Petroleum Corp. (CNPC), China's largest oil and gas producer, has forged a partnership with a carbon trading market based in Tianjin. Also, Sinopec Group, China's biggest oil refining company, is also involved in a project refining fuel from coal.

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