Business Activities News
- Sinopec signs landmark deal
Date: 28-Feb-2007 Sources: (Shenzhen Daily)
TOP Asian refiner Sinopec inked an agreement with Exxon Mobil Corp. and Saudi Aramco on Sunday to upgrade and triple the capacity of Fujian Petrochemical Co., a company owned 50 percent by Sinopec and 50 percent by the Fujian Provincial Government.
The agreement, which includes plans to build a petrochemical complex and market automotive fuels to the domestic market, signifies the first fully integrated refining and marketing joint venture project between a Chinese oil company and foreign partners.
The project will expand the Fujian refinery's capacity to 240,000 barrels per day (bpd) from 80,000 bpd and will outfit the plant with more complex refining technology that will enable it to process Saudi Arabia's heavy, sour crude into lighter products such as diesel and gasoline.
Additionally, the project will build a petrochemical complex to produce plastics and gasoline blending components, including an 800,000 tons-per-year ethylene steam cracker and 800,000 tons-per-year polyethylene unit. Crackers break down heavier hydrocarbons such as crude oil into lighter products that have higher commercial value.
The upgraded refinery should begin operating in early 2009.
Exxon (XOM), the world's largest publicly traded oil company, has gone on record saying it anticipates global energy demand growing by about 60 percent by 2030, most of which will come from developing countries, primarily India and China.
ExxonMobil China Petroleum and Petrochemical Co. and Saudi Aramco Sino Co. will each own 25 percent stakes in the refining and petrochemical complex. Fujian Petrochemical Co. will own the remaining half.
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