Fitch Ratings today said today the credit outlook for the Chinese oil and gas sector is positive for 2006.

"Credit quality across the Chinese oil and gas companies is robust, supported by healthy hydrocarbon reserves, strong product demand, favourable operating and regulatory regimes, solid government support, and impressive cash generation and financial flexibility," said Ma Shang, Associate Director in Fitch's Asia-Pacific Energy & Utilities team in a special 2006 outlook report on the Chinese Oil and Gas Sector published today.

Fitch notes that China's oil and gas industry has grown rapidly over the past decade driven by sustainable strong economic growth. China is now the second-largest oil consuming country in the world after the US, accounting for about 9% of global oil consumption, and the country is also the largest petrochemicals importer in the world.

By People's Daily Online