UpdateChina mulls $73bn petchem stimulus package – state media

22 January 2009 03:59  [Source: ICIS news]

(Adds details and quotes from CNPC source)

SINGAPORE (ICIS news)--China’s government is mulling a massive Yuan (CNY) 500bn ($73bn) stimulus package for the domestic petrochemical industry, according to state media reports on Thursday.

"The draft of this stimulus package hasn't been completed or examined by expert panels and it will be submitted to the State Council for approval later," China Business News quoted vice-chairman of China Petroleum and Chemical Industry Association (CPCIA)

Sources from the China State Council, the country’s chief administrative authority, were unable to comment about the proposed package when contacted by ICIS news.

The stimulus package will include CNY 100bn investment in 2009 and 2010 for oil products upgrade, and investment of CNY 400 bn for construction of 20 new large-scale petrochemical projects, according to China Daily.

The state-owned agency also suggested that up to CNY 100bn will be funded by petrochemical giants, Sinopec and China National Petroleum & Chemical (CNPC).

A source at the China National Petroleum & Chemical Planning Institute, a state-run think tank, said the Chinese government had asked for suggestions from various think tanks for planning purposes.

The source added that the suggestions were very general with no specific amounts mentioned.

The Chinese government had unveiled, only yesterday, another massive medical reform plan which promised to spend up to CNY 850bn by 2011 to provide universal health care services to the country 1.3bn citizens.

($1 = CNY 6.84)

Chow Bee Lin has contributed to this story

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