Sinopec, the largest refiner in Asia by capacity, has signed a US$9-billion agreement with state-owned Kuwait Petroleum Corp to set up a refinery joint venture in southern China, foreign media reported.
The two partners will each hold a 50% stake in the JV, according to the report.
Media reports said earlier this month that China's National Development and Reform Commission, China's top economic planner, had granted approval to the refinery complex.
Reportedly, the refinery complex, to be located in Zhanjiang, Guangdong Province, will include a crude oil refinery with daily processing capacity of 300,000 barrels and an ethylene plant with annual production capacity of 1 million metric tons.
Analysts said that the establishment of the JV will provide Kuwait a new channel to sell its crude oil. The Arabic country plans to boost its daily crude oil exports to 500,000 barrels from nearly 200,000 barrels in 2009.
