CHINA BECKONS MIDEAST REFINING INVESTORS

China National Chemical Import & Export Corp. (Sinochem) is ready to team up with Middle East investors to build refineries in China, OPEC News Agency reports. Sinochem Pres. Zheng Dunxun, who was part of a high level delegation led by Vice Premier Li Lanqing on a seven nation tour of the Middle East, said Sinochem also is seeking to build ethylene and fertilizer plants in the Persian Gulf. In an interview published by Beijing's Business weekly, Zheng disclosed Sinochem's plans to

Aug. 9, 1993

2 min read

China National Chemical Import & Export Corp. (Sinochem) is ready to team up with Middle East investors to build refineries in China, OPEC News Agency reports.

Sinochem Pres. Zheng Dunxun, who was part of a high level delegation led by Vice Premier Li Lanqing on a seven nation tour of the Middle East, said Sinochem also is seeking to build ethylene and fertilizer plants in the Persian Gulf.

In an interview published by Beijing's Business weekly, Zheng disclosed Sinochem's plans to participate in gas exploration projects in Arab countries. The gas might be shipped to China as LNG.

When predicted increased Chinese investments in the Middle East will promote China's exports of labor and equipment.

During his tour of Saudi Arabia, Oman, Qatar, United Arab Emirates, Bahrain, Kuwait, and Iran, Zheng signed several deals for Sinochem to buy oil and fertilizers.

Under terms of the contracts, Sinochem will import 100,000 b/d of oil from Saudi Arabia, Kuwait, and U.A.E., while another 10,000-20,000 b/d will be acquired from Iran. he said.

While in Muscat, Omani authorities agreed to sell crude oil directly to Sinochem, which, until now, has bought oil for China Is domestic needs on the international market through third parties.

China also agreed to import 100,000 tons of fertilizer from Abu Dhabi and Qatar.

JOINT VENTURES

In a separate move, Zheng said Sinochem's first joint venture refinery in China is due to go on stream late next year.

Sinochem and Total of France are building the Dalian West Pacific Petrochemical Co. refinery, which will have a capacity of 100,000 b/d.

Meanwhile, Business weekly said, Beijing is considering new guidelines for foreign investments in China that include access to domestic markets and treating all foreign funded firms the same as Chinese enterprises.

It quoted Jiao Sufen, director general of Beijing's Foreign Investment Administration, as saying that although China has opened its doors to foreign investors for the past 14 years, there still are problems in management of foreign capital.

Jiao revelead that $32.9 billion was committed by foreign concerns in the first 4 months of this year, while actual input hit a record $4.36 billion.

Foreign investment made up nearly 10% of China's total investment in fixed assets by the end of last year.