SINGAPORE, Aug 31 Reuters China39;s Sinopec Corp is setting up a new entity to invest in refinery and petrochemical assets overseas in a bid to leverage its expertise and deep pockets to expand globally as local Chinese oil demand nears a plateau.

After a quiet launch in late June of Sinopec Overseas Investment Holding as its sole platform for investing, building and operating refineries abroad, Sinopec is building up the team and setting the budget for the new entity, two company officials told Reuters.

The global push by Asia39;s largest refiner comes as China limits approvals of new refineries at home amid slowing demand growth and overcapacity, and as the industry shifts to higherend materials and energy transition products.

Sinopec will expand overseas refining and chemical business by taking full advantage of the group39;s core strength, Zhao Dong, president of parent company China Petrochemical Corp, was quotes as saying in late June when Sinopec announced the new entity in an inhouse newsletter.

Sinopec declined to comment to Reuters on the specific regions or assets it is targeting, but a senior company official, who declined to be named as he is not authorised to speak to the media, said Sinopec will prioritise locations where demand is growing and feedstock is easily accessible.

One such investment could be in Sri Lanka, where Sinopec was shortlisted to bid for an exportoriented refinery in Hambantota potentially worth billions of dollars.

Sinopec is also…