Kuwait, China agree to terms for Guangdong refinery
May 14, 2009
Kuwait and China have signed an agreement to establish a $9 billion, 300,000 b/d refinery at Zhanjiang, a city on the coast of Guangdong province in southwestern China.
Eric Watkins OGJ Oil Diplomacy Editor
LOS ANGELES, May 14 -- Kuwait and China have signed an agreement to establish a $9 billion, 300,000 b/d refinery at Zhanjiang, a city on the coast of Guangdong province in southwestern China.
Under terms of the agreement the refinery will be built in Zhanjiang instead of in Guangzhou, as originally planned, due to environmental concerns.
Sinopec will hold a 50% stake in the venture, which is scheduled to start operations in 2013, while state-owned Kuwait Petroleum International will hold 30%. The remaining 20% will be divided equally between Dow Chemical Co. and Royal Dutch Shell PLC.
