By an OGJ Online Correspondent
BEIJING, Mar. 8�Two Chinese companies and BP will begin building a $2.7 billion ethylene-led petrochemical complex in Shanghai in eastern China in October.
A recently completed feasibility study report has been submitted to the government for approval. BP will hold 50% in the project, with China Petroleum & Chemical Corp. (Sinopec) to hold 30% and Sinopec Shanghai Petrochemical Corp. will hold 20%.
The JV will build a 900,000 tonne/year ethylene cracker and polyethylene, polypropylene, and polystyrene plants with a capacity of more than 1 million tons/year, as well as styrene monomer, acrylonitrile, and other olefins derivatives units, at Shanghai Chemical Industrial Park at Caojing, Shanghai.
The companies expect to complete the project construction in 2005.
In 1996, Sinopec and its affiliate SPC signed a letter of intent with BP to consider a 50/50 joint venture. The companies completed a projected a project prefeasibility study and submitted the proposal to the government in 1997.
The government approved the project proposal in September 1999, and in June 2000 the companies agreed to raise the proposed ethylene capacity from 600,000 tonnes/year to 900,000 tonnes/year.
