China's top oil refiner Sinopec Corp. on Friday set up a coal-to-chemical subsidiary in an effort to become a leader of the country's coal-to-chemical industry in the next few years.
Sinopec Great Wall Energy Chemical Co., Ltd. was set up as a wholly-owned subsidiary of Sinopec, the company said in a statement.
The new company will focus on the investment and operation of Sinopec's coal-to-chemical business and strive to become a leader in China's coal-to-chemical industry in eight to ten years, the statement said.
Fu Chengyu, chairman of Sinopec Group, said that developing the coal-to-chemical business has great strategic significance for restructuring China's energy structure.
China has abundant reserves of coal but a lack of oil and gas, and coal is likely to continue to take up a major part of China's energy consumption in the next two to three decades, Fu said.
"As a result, we must step up adjusting the material structure for chemical products and expand the materials by developing coal- and natural gas-based businesses," Fu said.