China’s Oil Majors Plot Shift to New Fuels and Fine Chemicals

China’s state oil majors are racing to keep up with the nation’s breakneck energy transition, shifting operations from loss-making gasoline and diesel to alternative fuels and high-end chemicals.

Over the past week, both PetroChina Co. and Sinopec have reported first-half earnings blunted by weaker international oil prices and crumbling demand for fossil fuels at home. Their response, according to executives, will be to revamp downstream businesses and extend their reach to more specialized, higher-value products.