PetroChina, Shell, Qatar Petroleum in $11.7bn Taizhou project

06 August 2009 08:12  [Source: ICIS news]

SHANGHAI (ICIS news)--PetroChina, Royal Dutch Shell Plc and Qatar Petroleum International plan to jointly invest yuan (CNY) 80bn ($11.7bn) to construct a petrochemical complex at Taizhou in China's eastern province of Zhejiang, a Chinese government official said on Thursday.

The petrochemical complex would house a 20m tonne/year refinery, a 1.2m tonne/year cracker, a berth for crude carriers with 300,000 tonne capacity and a 23km-long undersea oil transport pipeline, said Wang Kan, an official at the Taizhou Development and Reform Commission (TDRC).

TDRC is a local government unit of the National Development and Reform Commission, which grants approvals for major infrastructure projects in China.

"We are lacking fuels in east China. The new refinery will ensure fuel supply after it comes on stream," Wang said.

PetroChina had sought project approval from the Chinese government in January 2009, according to TDRC's website.

"The feasibility study and the environmental impact assessment of the large project are still [on]going. The government could approve only after all the paperworks are prepared well," Wang said.

The companies signed a letter of intent (LOI) in June 2008 to start joint preliminary studies to assess the viability of building a petrochemical complex and marketing its products in China, Shell said on its website.

Qatar Petroleum would provide crude oil for the refinery through imports while Shell would provide advanced production technology, Wang said.

"As for the downstream chemical plants, they are also under consideration. And we expect some downstream chemical [plants] to be built in the future," he said.

PetroChina would hold a 51% stake in the venture, while Qatar Petroleum International and Shell would each hold a 24.5% stake, based on TDRC's statement.

($1 = CNY6.83)

Bohan Loh contributed to this article

For more on PetroChina and Shell visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Judith Wang
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index