Sinopec Engg and Kazakhstan Petrochemical Ind terminate previously announced US$1.85 bln contract

18-Aug-14

Sinopec Engineering, a subsidiary of China Petrochemical, and Kazakhstan Petrochemical Industries (KPI) have terminated their previously announced US$1.85 bln contract, as per chemicals-technology.com. In June 2013, Sinopec Engineering signed an engineering, procurement and construction deal with KPI to construct propane dehydrogenation and polypropylene units. Since then, the companies have been negotiating outstanding commercial matters. Sinopec Engineering said in a statement: "Due to a failure on reaching an agreement on key commercial conditions and other aspects, certain conditions of the contract were not fully satisfied. As the contract had not been implemented yet, both parties had no outstanding liabilities in relation to the contract. The company said that to date KPI has not made any payment associated with the contract and the company did not recognise any revenue in relation to the contract. Sinopec Engineering expects the termination will not have any adverse impact on its existing operations, business plans or business development strategies.