BP Amoco, SPC sign China cracker study

20 October 1999 15:43  [Source: ICIS news]

LONDON (CNI)--BP Amoco and the Shanghai Petrochemical Company (SPC) paved the way here on Wednesday for a $2.5bn (Euro2.3bn) ethylene cracker and derivatives complex in Jinshan, Shanghai by signing a framework agreement to undertake a joint feasibility study for the worldscale project.

The signing ceremony, timed to coincide with the visit to Britain of Chinese President Jiang Zemin, follows approval this month by the Chinese government of an outline project proposal submitted by BP and SPC in July 1997.

BP Amoco and SPC, an affiliate of the China Petrochemical Corporation (Sinopec), plan to form a 50:50 joint venture to build the 650 000 tonne/year cracker and derivatives plants.

Under the agreement signed today, the two companies plan to complete the feasibility study report and negotiation of joint venture contract and other commercial agreements by the end of 2000. They intend to establish the joint venture before the end of 2001 and complete construction of the cracker and derivative plants by 2005.

BP Amoco Chemicals chief executive Bryan Sanderson said the agreement will pave the way for the largest investment made by BP Amoco in China since the company's investment in an ascetic acid joint venture in Chongqing.

By: Neil Sinclair
+44 20 8652 3214

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