KPC forms JV with China's biggest oil refiner Sinopec

26 Dec '07

2 min read

Findings of a feasibility study for the multi-billion Sino-Kuwaiti joint venture in south China's Guangdong Province is expected to be submitted to the Chinese authorities for approval in the second half of 2008, state-run Kuwait Petroleum Corporation (KPC) said.

"Overall, we are satisfied with the progress of the refinery and petrochemicals complex project, which covers every aspect involving substantial resources and strategic interests from all partners," said Saad Al-Shuwaib.

Al-Shuwaib, however, admitted a possible delay in the development, given that KPC is the only promoter of the project, also in consideration that such projects require clear directions from the National Development and Reform Commission (NDRC), China's top economic planning agency, which draws up country's development and major projects over a five-year cycle.

Kuwait Petroleum International (KPI), the international refining and market arm of the KPC, has formed the joint venture with China's biggest oil refiner Sinopec Corp. to construct the integrated complex, to be located in the Nansha area of provincial capital Guangzhou.

The refinery will be designed to process 100 percent Kuwaiti crude supplied by the KPC, with a capacity of 13 million tons per year, or 260,000 barrels per day (bpd), while the ethylene cracker unit is slated to have an annual production capacity of one million tons.

The KPI-led consortium also includes Kuwait Petrochemicals Company (PIC) and foreign partners such as Dow Chemical Co. of the US.

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