China’s state-owned oil and gas producer PetroChina [0857:HK] has acquired a 100% stake in Potevio New Energy, a state-owned enterprise specialized in electric vehicle (EV) charging businesses, as reported by Reuters on September 8. Established in 2010, Potevio New Energy boasts extensive experience in constructing and operating EV charging networks. As of the end of 2021, the company managed approximately 50,000 charging points in over 50 Chinese cities. Through this acquisition, PetroChina aims to bolster its position in the rapidly growing EV charging market by integrating a key player.
China unveiled a target last year to establish enough charging stations to support 20 million electric vehicles by 2025, offering financial incentives and favorable policies to encourage charging station development. PetroChina, leveraging its extensive network of oil and gas stations across the country, can strategically deploy EV charging facilities to capitalize on this initiative. In the preceding month, the company established a new entity in Putian, Fujian province, with the purpose of investing in and operating EV charging infrastructure. Furthermore, PetroChina has formed a joint venture with Chinese automaker SAIC Motor [600104:CH] and battery manufacturer CATL [300750:CH] to supply swappable batteries for electric vehicles. These investments in EV charging infrastructure align with PetroChina’s broader strategy to diversify its portfolio by entering low-carbon sectors, including renewables, hydrogen fuel, and carbon capture and storage (CCS) projects.