Qatargas, CNPC and Shell to Build Joint Venture Refinery in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing), Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands) and Qatargas (Doha, Qatar) signed a letter of intent in Doha to form a joint venture to build an oil refinery and petrochemical products manufacturing complex in China. The three parties will conduct a joint evaluation regarding the feasibility of the proposed project.

The complex will manufacture finely treated fuel and petrochemical products. CNPC will hold 51% of the shares at the refining and petrochemical integrated complex; Qatargas and Shell will each hold 24.5% of the shares.

This will be Qatargas' first project in China. Qatar's Deputy Prime Minister and Minister of Energy and Industry, Abdallah bin Hamad al-Atiyah, said this project will help establish economic ties between Qatar and China and open up further investment opportunities. Qatargas is glad to become partners with CNPC and Shell in this project, to enhance commercial ties and play a role in China's refining and petrochemical industry.

Linda Cook, Executive Director of Shell Gas & Power, said that Qatar and China are of strategic importance to Shell. Shell is committed to fostering a cooperative relationship with both parties and strengthening its ties to the Chinese market.

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