Sinepec, BP plan giant JV

Sinepec, BP plan giant JV

BEIJING (AFP): China Petroleum and Chemical Corp (Sinopec) and
BP Chemicals plan to build a petrochemicals complex by 2005 that
is expected to be the largest of its kind in Asia, the China
Daily said Saturday.

The venture is expected to be set up this month with the aim
of developing the capacity to produce 900,000 tons of ethylenea
each year.

Under the US$2.7-billion deal, BP Chemicals will control 50
percent of the Shanghai-based joint venture, Sinopec 30 percent
and Sinopec subsidiary Shanghai Petrochemicals Co the remaining
20 percent.

BP is one of the foreign shareholders in Sinopec and the new
deal makes it one of the biggest investors in China.

The project is the largest joint venture between the two
companies and is expected to improve the competitiveness of
China's petrochemicals industry.