BP, Sinopec and SPC Complete Shanghai Ethylene Project Feasibility Study
12-Mar-2001
BP, China Petroleum & Chemical Corporation (Sinopec
Corp) and Sinopec Shanghai Petrochemical Company
Limited (SPC) announced today that they have signed an
approval agreement for the joint feasibility study for approval
of a $2.7 billion ethylene cracker and derivatives complex to
begin operation in 2005. The completed feasibility study will
now be submitted for approval to the Chinese authorities.
In October 1999, the Chinese government approved the
project proposal for the project, a joint venture between BP
(50 per cent), Sinopec Corp (30 per cent) and SPC (20 per
cent). The complex will be located at Shanghai Chemical
Industrial Park at Caojing.
“The three companies enjoy an excellent working
relationship,” commented Graham Hunt, BP Chemical
China’s chief executive. “We are confident that the spirit of
co-operation already established will continue through the
approval process and project execution to create the largest
and most efficient petrochemical complex in China. We also
greatly appreciate the support Shanghai Municipality has
given to the project.”
Wang Jiming, Sinopec Corp President, noted: “Working
closely and efficiently together, the three companies have
completed an enormous amount of work and established a
solid foundation for co-operation and partnership. This
exemplifies the importance that Sinopec places on its
commitments to strategic partners and other shareholders.
We believe our joint efforts will result in a top tier enterprise
worldwide.”
The new company is planned around a 900,000 tonnes a
year cracker and will include combined polyethylene,
polypropylene and polystyrene production of more than one
million tonnes a year, and world-scale styrene monomer,
acrylonitrile and other olefins derivatives units. The
manufacturing and marketing organization will serve the
demands of the growing China market. BP’s leading
technology and business processes together with Sinopec’s
extensive petrochemicals experience will play a key role in
establishing a best-in-class enterprise.
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