Indian Oil Corporation is planning to join hands with China's state-owned China Petroleum and Chemical Corporation with a 26 percent partnership, to build a $4-billion refinery-cum-petrochemical complex in Shanghai.
A proposal is likely to be placed before the Chinese government during Petroleum Minister Mani Shankar Aiyar's visit to Beijing in January. The project is expected to go on-stream by 2009.
The refinery-cum-petrochemical complex of 10 million tons is likely to come up in the northern part of Hangzhou Bay which will include a million ton per annum ethylene cracker plant. Sinopec is carrying out a feasibility study for the project after which would need the approval of the National Development and Reform Commission of China.
Sinopec is the largest producer and marketer of petroleum products and petrochemicals in Asia with a refining capacity of over 140 million tons, whereas IOC with a refining capacity of 54 million tons, was India's biggest refiner.
India and China the two biggest consumers of oil and gas and were looking at exporting petroleum products and scouting for oil and gas blocks in the world.
Aiyar's visit is to further the cause of forming an alliance with its rival to tap the overseas energy assets. This partnership could help the two oil firms in the long-run.
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