Oil & Gas Industry Chinese Oil Company Buys Into Foreign Markets
After announcing plans to establish a refinery with a local partner in Brazil, Sinopec now eyes another project in the oil and gas industry: The company has reached an agreement with Yingde Gases to establish a of Sino-foreign Joint Venture for a gas separation plant.
Hong Kong – Sinopec Jiujiang Petrochemical and Yingde Gases plan to establish a joint venture: Both companies agreed to jointly build and develop a new air separation plant of 45000 standard cubic meters per hour for a coal to hydrogen project. Jiujiang Petrochemical buys in with the current asset and Yingde Gases finances the facility with cash, speakers reported about the contract. Production start is scheduled for early 2015.
Already in 2012 rumours about Chinese investments in international petro–projects caused a stir in the global oil and gas industry, after the rumours about Petro China buying into a proposed refinery in Ecuador hit the market in July. This development is, nevertheless, only the latest step in a longer strategy to expand the global footprint of China's booming refining business analysts believe. Read more about this trend inChinese Oil Companies on Shopping Spree Abroad
It’s the second plan for a JV with a foreign partner for the Chinese petrochemical specialists: Earlier in june, the company had signed up for a partnership with Petrobras for a refinery project in Maranhão, Brazil. Based on mutual interest, the letter of intent has confirmed that the two parties would conduct feasibility study on the establishment of a joint venture on the Premium 1 refinery project.