China Petroleum & Chemical Corp, Asia's biggest refiner, and China Gas Holdings Ltd are to form two joint ventures to jointly expand China's retail market.

A statement posted on China Gas's website on Monday announced the agreement.

Sinopec, China's second-biggest natural gas producer, will share resources with China Gas to distribute liquefied petroleum gas, compressed natural gas and liquefied natural gas, the statement said.

Sinopec and ENN Energy Holdings Ltd initiated a takeover of China Gas in December, but will not pursue this after failing to acquire regulatory approval, the bidders said in a joint statement on Monday.

Sinopec and China Gas will form ventures to sell liquefied petroleum gas produced by Sinopec's refineries and introduce liquefied natural gas and liquefied petroleum gas counters at Sinopec's gas stations.