Sinopec commences construction of ethylene complex in Zhanjiang as part of 50:50 JV with Kuwait

26-Dec-16

China Petrochemical Corporation (Sinopec Group) a super-large petroleum and petrochemical enterprise group, has begun construction of an ethylene complex in South China’s Zhanjiang. The mega project, which includes construction of a refinery, is being built as part of a 50:50 joint venture with Kuwait. The ethylene complex is likely to be completed by 2020.

The first phase of the mega projects will have an 800,000 tpa ethylene complex and a 10 million tpa refinery. While the ethylene complex is expected to come on stream by 2020, the refinery is likely to be put into use a year earlier, according to Chinese media reports.

The mega projects are being built on the basis of a preliminary agreement with Kuwait. The deal envisages 50:50 joint venture to build the energy complex in Zhanjiang.

The mega projects are expected to cost 5.9 billion yuan (US$848.76 mln), of which 3.8 bln yuan (US$546.66 mln) investment will be done in the first phase.