Exxon gambles on growing Chinese demand

Exxon began construction of a US$4.5 billion refining and petrochemical compound in Quanzhou, Fujian province, in cooperation with Sinopec, Saudi Aramco and the Fujian provincial government on Wednesday, the Wall Street Journal reported. When completed in 2011, the manufacturing complex will be the company’s largest in the world. Exxon also opened its first gas station in China and plans to open 750 more. The company is searching for new sources of oil as well as growing markets as demand wanes in developed Western nations turning to alternative fuels. China’s demand for oil is projected to increased at 3.5% a year through 2030, though the company cannot be sure of its profits as Beijing continues to protect the population from rising oil prices by imposing limits on the amount refineries can charge for gasoline and diesel.