China Petrochemical Corp. (Sinopec Group) has signed a framework agreement with the provincial government of Hainan for building a 1 mln ton ethylene plant. Construction of the plant will begin around 2010, subject to approval from the National Development and Reform Commission. The plant will be built in the Yangpu port area, close to where Sinopec has a refinery with a production capacity of 160,000 bpd.
Sinopec Group, the parent company of China Petroleum & Chemical Corp. (SNP), will be responsible for carrying out a feasibility study on the project and drawing up an investment plan. The provincial government will make an environmental assessment and build support infrastructure, such as power supply.