CHINESE DOWNSTREAM PROJECTS MOVE FORWARD

Beijing has approved two more major petrochemical projects in China's southern Guangdong province, China Daily reports.

Meanwhile, construction soon will begin on a 57,500 b/d refinery at Shenzhen in Guangdong province. All three projects involve existing or prospective joint ventures with foreign companies.

PETROCHEMICAL PROJECTS

China's government approved a $1.73 billion, 300,000 metric ton/year ethylene plant at Maoming. Completion is scheduled for 1995.

China's Petrochemical Industry Bureau (PIB) is negotiating with several foreign firms for $400 million in outside funding for the plant.

Also approved is a 115,000 metric ton/year polyethylene plant at Guangzhou. Amanda Holdings Ltd. and Yue Xiu Enterprises Ltd., with the China Petrochemical Co. and the Guangzhou Economic Construction Co., agreed to a joint venture to develop the project, reports Xinhua News Agency. The plant is to be completed in 3 years at a cost of $566-755 million.

The largest project recently approved under the 5 year plan is a joint venture of Royal Dutch/Shell Group and five Chinese companies for a petrochemical/refining complex at Huizhou (OGJ, Feb. 11, Newsletter).

The biggest Sino-foreign joint venture to date, the $2.5 billion project involves a 100,000 b/d refinery and a 450,000 metric ton/year polyethylene plant. The complex is to start up in 1997.

PIB has targeted an increase in the country's value of petrochemical production to $1.21 billion by yearend 1995 from $768 million in 1990, China Daily said.

The Beijing newspaper quoted a PIB official as saying there were still a number of small petrochemical projects under construction in the province that might require foreign funds. They include a 120,000 ton/year compound fertilizer plant at Zhanjiang and a sulfur plant in Yunfu County.

REFINERY

Construction is to begin on a 57,500 b/d refinery in Shenzhen that is to receive $140 million in foreign investment, China Daily reported.

Products will include unleaded gasoline, diesel, and jet fuel. The project will include a 1.4 million bbl oil terminal in Dapeng Bay.

Hong Kong China Resources Holding Co. Ltd., China Petrochemical Corp., and Shenzhen city are the joint venture partners in the 3 billion yuan ($551 million) project. Construction is to be complete in 3 years.

The refinery is needed to ease chronic shortages of refined products in Shenzhen and Hong Kong and improve relations between the two.

Demand for refined products in the booming Shenzhen area has increased by 15%/year in recent years.

Shenzhen products demand is expected to jump to about 19,200 b/d this year from 15,700 b/d in 1990.

Hong Kong products demand is approaching 115,000 b/d, of which 77% is imported.

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