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Sinochem, until 1993 China's monopoly oil trader, wants to establish
itself into a solid No. 4 oil firm in the country, after PetroChina,
Sinopec Corp and CNOOC Ltd, by building up its exploration, refining
and fuel marketing strength.
Photo: Sinochem service station in Beijing taken by PetrolWorld.
Sinochem aims to complete the 240,000 barrels per day plant in
Quanzhou, Fujian Province, in 2012. It is set to be China's next major
greenfield refinery. The refinery, estimated to cost close to
US$4 billion by an industry executive, is awaiting the government's
final approval after securing a preliminary go-ahead from the top
energy agency, the National Energy Administration.
Sinochem hopes to partner OPEC member Kuwait, which in late 2007 agreed
to supply 240,000 bpd of crude to the Sinochem plant. Sinochem also
wants its long-time partner, Total, in the project, sources said.
Sinochem expects to hold a 51 percent stake in the project, while the
other two parties would evenly split the remaining 49 percent.
Worried that the project may not get approval from the central
government, Sinochem said in 2007 it wanted a 100,000-bpd plant to
process fuel oil, which only needs clearance from local
government. "That hurdle - the worry that the bigger buys will
block it - is gone now," said a Sinochem executive who declined to be
named.
Its only other refinery holding is a 200,000 bpd plant in northeast
China, a joint venture with Total and PetroChina. But the plant is
virtually controlled by PetroChina. Sinochem runs a separate fuel
marketing firm, also in tie-ups with Total, to set up petrol stations
in China. An alliance with Kuwait, if finalized, would mean the
Middle East exporter likely committing crude supplies totaling 540,000
bpd to China.
PetrolWorld 160809
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