Major Petrochemical Project Set to Start Late Next Year in East China

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Last updated at: (Beijing Time) Monday, December 30, 2002

Major Petrochemical Project Set to Start Late Next Year in East China

Construction of a planned 26 billion-plus yuan (3.25 billion US dollar) petrochemical project is set to start at the end of next year, a Chinese partner of the project said.

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Construction of a planned 26 billion-plus yuan (3.25 billion US dollar) petrochemical project is set to start at the end of next year, a Chinese partner of the project said.

A spokesman for the Fujian Refinery Co. said recently that the project would be a joint venture, involving the Chinese company, Exxon Mobil and Aramco Overseas Co (AOC), and that the feasibility report on the project was approved by the Chinese government in October this year.

Located in Quanzhou city in east China's Fujian province, Fujian Refinery Co. is a joint venture between Sinopec and Fujian province.

Fujian Refinery Co is expected to hold 50 percent of the 26.69 billion yuan (3.25 billion US dollar) project, while Exxon Mobil and AOC will each own a quarter of the project.

The joint venture is expected to be set up in the second quarter of next year, said the spokesman.

The planned refinery and petrochemical project will have a total refining capacity of 12 million tons of oil annually, including the existing oil refining capability of 4 million tons of the Chinese company.

The joint venture will have the capacity to produce 800,000 tons of ethene, 650,000 tons of polythene and 400,000 tons of polypropylene each year.

The venture is expected to turn out 9.72 million tons of refined oil and chemical products upon its completion in 2006, which would increase its annual sales revenue by 13.45 billion yuan (1.6 billion US dollars).

It would take about eight years and one month for the joint venture to recover its investment, including the period of construction, said the spokesman.

A senior Sinopec manager noted that the venture would be one ofits major development projects in the coming decade.

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