BP Amoco to proceed with China cracker study

19 October 1999 16:28  [Source: ICIS news]

LONDON (CNI)--BP Amoco is expected to announce later this week the formal go-ahead for detailed feasibility studies on its proposed $2bn-2.5bn (Euro1.84bn-2.29bn) joint venture ethylene (C2) cracker project in Jinshan, Shanghai, China.

The announcement, timed to coincide with the official visit to the UK of Chinese President Jiang Zemin, follows approval from China's state planning authority for BP Amoco and its partner Shanghai Petrochemical Co (SPC) to proceed to the next development stage with the 650 000 tonne/year cracker.

BP Amoco and SPC, which each have a 50% stake in the proposed joint venture, are expected to complete the detailed feasibility study by the end of next year. The worldscale cracker is provisionally due onstream in 2005.

Pre-feasibility studies have been underway for some time on the project for which BP and SPC submitted an outline proposal in July 1997. This followed the signing of a letter of intent in 1996.

Shell and BASF have also submitted proposals to the State Development Planning Commission for integrated olefins joint ventures in China. Exxon, Dow Chemical and Phillips Petroleum are looking at similar projects.

By: Neil Sinclair
+44 20 8652 3214

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