Ethylene expansion for China’s Jiangsu province
01 June 2008
China Petroleum & Chemical Corp (Sinopec) and its German partner BASF have completed a feasibility study on the expansion of an ethylene joint project, first announced in July 2006, in Nanjing, in eastern China's Jiangsu province.
A joint venture company will expand capacity at a steam cracker by 25% to around 750,000 metric tons of ethylene per year and will make investments in additional downstream plants.
Sinopec and BASF said then that they would each invest US$250 million into the plant for expansion and the new facilities are expected to become operational in 2008. To boost efficiencies the two firms have also agreed to integrate their second joint operation in Nanjing, Yangzi-BASF Styrenics, into BASF-YPC – a 50-50 joint venture set up in 2005.
Sinopec has also indicated that it will sign a deal with Seoul, based, SK Energy to jointly build the petrochemical complex in Wuhan, China, for which Sinopec has already begun construction. SK Energy will
apparently hold 25% stake in the project, which involves an 800,000 tonne/year naphtha cracker.
SK Energy’s investment is likely to be about $1 billion on the project, which is estimated to have a total value of $2.2 billion. The plant is scheduled to be onstream in 2011.
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