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October 27, 2009

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Home » Business » Energy

Sinopec, Kuwait tie up in mega project

CHINA'S Sinopec Group and OPEC member Kuwait yesterday signed a preliminary pact to build a mega refinery and petrochemical complex in south China's Zhanjiang, an industry executive said.

The deal, inked also with the local government, marks another step forward for the planned US$9-billion venture after China's order to relocate the plant due to environmental concerns, allowing partners to officially kick off a feasibility and environmental impact assessment.

"The MOU is signed today (Monday), it's making the deal official after picking Zhanjiang as the new site," said the official familiar with the investment.

The feasibility and impact reports are expected to be completed by March 2010 before being submitted to the government for approval.

"We are expecting to get that approval around April or May," the official added.

Kuwait has yet to finalize foreign partners for the project, likely to be one of the largest foreign investments in China, to be built in Zhanjiang, Guangdong Province.

The Organization of Petroleum Exporting Country member last year shortlisted Royal Dutch Shell and Dow Chemical Co as potential refining and petrochemical partners, respectively.

But BP, which has long eyed the same site, Donghai Island of Zhanjiang, to build its first China refinery, is keen in joining the refining part of the Sinopec-Kuwait project, the official said.


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