Beijing: China has granted environmental clearance and okayed a technical review of an $8.7 billion (Dh32 billion) refinery and petrochemical joint venture between Sinopec and Kuwait, paving the way for final state approval soon.
The venture, to be built in southern coastal city Zhanjiang, includes a 300,000 barrels-per-day (bpd) refinery and a 1 million tonnes-per-year ethylene complex, at a cost in line with previous estimates of around $9 billion.
"With both the MEP clearance and the technical review, it means the project is technically ready for final approval by the NDRC," said one industry executive with direct knowledge of the Kuwait venture yesterday. "They are both significant."
The venture will be 50-50 owned with Sinopec Group, parent of top Asian refiner Sinopec Corp, but Kuwait is likely to hunt for a second or third foreign partner for joint funding once the final Chinese approval is granted, the executive said.
Kuwait is on the lookout for direct marketing and retail access in China, the world's fastest expanding major fuel market which has long been dominated by oil duopoly Sinopec and PetroChina.
