(EnergyAsia, August 28, Friday) — Kuwait Petroleum Corporation and China’s Sinopec Group have agreed on a new site for a mega refining-and-petrochemical joint venture project, boosting chances for its approval by the Chinese government later this year.
The plant will be located on Donghai Island in the coastal city of Zhanjiang in China’s Guangdong province. In the original plan in 2006, the project was to be located at the Nansha district of Guangzhou city, but this was scrapped on concern over its environmental impact on the densely-populated area.
The cost of the project, initially estimated at US$9 billion, will be adjusted to take into consideration the conditions of the new site. Scheduled for completion in 2013, the plant will be able to produce 300,000 b/d of oil products and one million tonnes of ethylene a year.
The project will provide a guaranteed outlet for Kuwait’s crude exports. KPC is targeting to export 500,000 b/d of crude to China by 2015.