SK Energy and Sinopec JV to set up naphta cracker in Central China

13-Jun-08

SK Energy Co, plans to tie up with China Petroleum and Chemical Corp (SINOPEC) to build a naphtha-cracking centre in Wuhan, Hubei Province, Central China. The two companies have signed a preliminary agreement for the project, estimated to cost US$2 bln. The plant will produce 800,000 tpa of ethylene, 300,000 tons of high density polyethylene (HDPE), 300,000 tons of linear low density polyethylene (LLDPE) and 400,000 tons of polypropylene (PP). SK Energy will hold a 35% stake in the joint venture with Sinopec holding the balance 65%. The project is scheduled for completion in H2-2011. It will also produce key petrochemical products including 300,000 tons of high density polyethylene, 300,000 tons of linear low density polyethylene and 400,000 tons of polypropylene, a company spokesman said.