Sinopec, Kuwait Petro building $9.3-bn petrochemical complex in China
19 Nov 2011
China Petroleum & Chemical Corp (Sinopec), Asia's largest oil refiner and Kuwait Petroleum Corp (KPC) yesterday began construction of their $9.3-billion joint refining and petrochemical complex in the southern Chinese province of Guangdong.
The equal joint venture project, in the port city of Zhanjiang, which includes a 15 million-ton-a-year refinery and a 1-million-ton-a-year ethylene plant, is expected to start operation in 2015.
The Zhanjiang project, which is one of the largest Sino-foreign petrochemical projects, had in March this year won approval from the National Development and Reform Commission, China's top planner.
The Zhanjiang refinery will produce gasoline meeting the Euro V emission standard and diesel to the Euro IV standard, Sinopec said in a statement.
KPC had earlier said it is looking for a partner for part of its 50 per cent stake in the project, had said in April that it was in talks with British oil giant BP plc and other major oil companies for taking a stake in the project.
Since the past three years, China has been expanding its refining and storage capacity in order to meet rising fuel demand in the world's second largest economy.
Sinopec also has a $5 billion joint venture with Saudi Aramco and Exxon Mobil Corp for a refining and petrochemical complex in south China's Fujian Province.
