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.