Sinopec-Kuwait Refinery to Land in Guangzhou City

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Researched by Industrial Info Resources (Sugar Land, Texas). Sinopec (Beijing), China's largest oil producer and Asia's most profitable company, and the Guangdong government officially submitted a report on the joint-venture oil refining project with Kuwait National Petroleum Corporation (KNPC) (Safat, Kuwait) to the National Development and Reform Commission (NDRC) of China for approval.

This long-talked about mega-refinery with an investment of $5 billion is envisioned to have an annual production capacity between 130 million to 150 million tons. This report is submitted in the name of Nansha Plant of Sinopec Guangzhou, capital city of South China’s Guangdong province. According to an official with Guangdong Development and Reform Commission (GDRC), it's highly likely that this mega-refinery will land in Guangzhou city.

This project will surpass the Zhonghai Shell South China Sea Petrochemical project, currently China’s largest joint-venture project with an investment of $4.3 billion, and become the largest joint-venture project in China when put into implementation.

If located in Guangzhou city, this project will deliver practical benefits to the citizens of Guangzhou apart from enormous economic benefits to the government. Once put into full operation, this refinery will provide a timely relief to Guangzhou’s refined oil supply, which is currently strained.

This project was first put forward at Boao Forum for Asia held in April last year in Hainan province. Since then, there have been intense contacts between KNPC and Sinopec making exchanges on the building of this refinery. Yet, the actual location of this refinery has been undecided until recently; reliable news leaked out which was reinforced by the fact that Sinopec Guangzhou had been involved in the preparation of the report.

Guangdong province now boasts three large local oil refining plants with a total annual output of 120 million tons of refined oil. Yet, only around 5 million tons of this total sells locally.

A 10 million ton scale oil refining plant by Guangzhou Sinopec is currently under reconstruction and expansion, which has an investment of $562 million and is one of Guangdong province’s ten major projects.

The reconstruction and expansion of this 10 million ton scale oil refining plant and the completion of the expansion of the ethylene plant with an annual output of 800,000 tons will make Guangzhou Sinopec a world-class integrated petrochemical base, according to experts from Guangzhou Sinopec.

According to the eleventh five-year plan of Guangdong Sinopec, the total production value of petrochemical industry in Guangdong Province is expected to reach over $95 billion with an average annual growth rate of 20% by 2010.

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