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CHINA> National

PetroChina joins Shell, QPI for petrochemical JV

(Xinhua)
Updated: 2008-06-24 15:35

BEIJING -- PetroChina said on Tuesday it signed a letter of intent with Qatar Petroleum International (QPI) and Shell (China) Ltd. to assess the feasibility of setting up a refinery and petrochemical complex in China.

PetroChina is to control 51 percent of the venture, while QPI and Shell would each take a 24.5 percent stake in the new complex, which is expected to be a world-class producer of refined fuels and petrochemicals.

No further details were available about the deal, although there have previously been media reports that the complex might be located in the southern Hainan Province.

The letter of intent was signed in Doha, the capital of Qatar, during Chinese Vice President Xi Jinping's official visit.

China's rising demand for petrochemicals is attracting investments from major oil producers from the Middle East.

During Xi's visit, Saudi Basic Industries Corp. signed a deal with China Petrochemical Corp., the country's largest oil refinery, to expand the scope of their partnership with a petrochemical complex under construction in north China's Tianjin municipality.

The Tianjin complex, a 50-50 joint venture, would cost more than $2.5 billion.