Press Releases – 23 March 2011
The Chinese government has given final approval for a joint venture between Q8 and China Petroleum and Chemical Corporation (Sinopec), one of the world’s largest refiners, to build a world-class refinery and petrochemical complex in south China.
Q8 and Sinopec each hold a 50 per cent share in the project which, valued around $9 billion, is China’s largest Sino-foreign joint venture.
Located on Donghai Island, near Zhanjiang City in Guangdong Province, the refinery is expected to be operational from 2014/15. It will process 100 per cent Kuwaiti crude oil, with a refining capacity of 300,000 barrels per day, equivalent to 15 million tons per annum. In addition, the ethylene plant will have an annual production capacity of one million tons.
The joint venture represents a highly significant step forward in plans to expand Q8’s business in China, which is the world’s second largest consumer of petroleum products.
Hussain E Esmaiel, President of Kuwait Petroleum International (LEFT) with Mr. Wang Tianpu, President of Sinopec
Signing of the agreement to begin the engineering design work took place on the 15th March 2011 in Beijing; between Sinopec and Q8 on behalf of the Kuwait Petroleum Corporation. The parties plan to complete the work by early 2012 and commence construction at the appropriate time, targeting completion in 2014/2015.
Hussain E Esmaiel, President of Kuwait Petroleum International (Q8), said after the ceremony:
‘’In view of the Zhanjiang government’s support and incentives offered in the Memorandum of Understanding we have signed today, it is clear that the Donghai Island site, which is located in Zhanjiang City, West of Guangdong province, provides the project owners with exceptional technical advantages, including the availability of deep water for Very Large Crude Carriers, good environmental conditions and very good land condition; and economical attractiveness to satisfy the expected economical returns of the Sino-Kuwait joint venture project”.
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