NDRC has granted state-owned Sinochem permission to build a 240,000 bpd refinery in Quanzhou.
Sinochem's HQ Image: Sinochem |
While considerably smaller than its other state-owned cousins Sinopec, PetroChina and CNOOC, Sinochem's latest announcement shows its growing aspirations to become a fully integrated energy firm. The company finally received approval from China's top economic planner, the National Development and Reform Commission, after to construct the new refinery submitting a proposal back in 2005.
The 240,000 barrels-per-day project will include a 2.4 million tonne-per-year fluid catalytic converter and will mainly process crude from the Middle East, in particular OPEC member Kuwait, with whom Sinochem signed a 240,000 bpd agreement back in 2007.
Sinochem hope to use the proceeds of a projected 35 billion yuan ($5.5 billion) initial public offering (IPO) in Shanghai to fund the massive refinery project. Primarily a petroleum and chemicals trader, Sinochem's long term goals include exploration, production, refining and retailing.