Asian refiner Sinopec, Exxon Mobil Corp and Saudi Aramco are contemplated to have signed an approximately US$3.5 billion deal to expand a refinery in South China. This is regarded as the country's largest integrated oil project in the sense of refining, chemicals and marketing. This agreement is believed to triple the capacity of a refinery in Fujian province to about 12 million tpa and add an approximately 800,000 tpa ethylene cracker. Several downstream facilities are also planned as part of the deal. They will include a 650,000 tpa polyethylene plant, a 400,000 tpa polypropylene unit and a 1 million tpa aromatics plant.
The deal gives Exxon, the world's top oil firm, and Middle Eastern giant Aramco a foothold in China's insular 6.2 million bpd refining sector, currently dominated by state giants Sinopec and PetroChina. The agreement is also likely to give foreign partners access to China's protected retail sector, where the Shell Group, BP and Total are already active.
China's refining industry is set to expand by nearly 30% in the next five years. After the inking of this deal, Exxon is predicted to have planned another integrated refining complex in China's Guangdong province while Aramco is considered to be negotiating with Sinopec for a stake in the proposed US$1.2 billion refinery in eastern China
11-Jul-05 
