We are pleased to announce that we are an official associate of ibc’s conference, “Middle East Downstream Investment Strategies & Major Projects in China”, on 22-23 May, 2006, in Dubai.
A lot of press has been given to China’s offshore demand for, and investment in, oil and gas (including on this Blog – link here and here for details), but foreign investment China’s own downstream petrochemical sector has also been growing significantly.
These issues, and the opportunities on offer, will be covered at ibc’s upcoming conference – the 1st ME Downstream Investment Strategies & Major Projects in China – on 22-23 May, 2006, in Dubai. China Business Services is pleased to announce that we are an official associate of the event.
Details are included below for reference. More information, including registration details, can be found here.
“For many petrochemical producers, China looms large in forecasting when deciding which geographical markets to consume output. Major western companies like ExxonMobil and Shell have investments in the Middle East and they are also planning or building similar plants in China to capture a share of the colossal growth.
To gain a foothold in the Chinese market, Saudi Aramco has begun efforts by participation in China petrochemical projects. The kingdom’s oil and gas producer together with Sinopec and ExxonMobil have begun their joint venture project in Quanzhou, Fujian province. The project is a $3.5 billion expansion of the Quongang refinery in Fujian, which would involve the construction of 800,000 tons per year (t/y) ethylene cracking unit, enabling the processing of cheaper Saudi crude.
Additionally, with consumption of petroleum products rising rapidly within China, there is renewed interest in the construction of more modern greenfield refineries. Sinopec and SABIC are also working together to explore the feasibility of developing a new grassroots refinery in Qingdao in Shandong province.
Iran, through the government-owned National Petrochemical Co. (NPC), has made its petrochemical industry a strong second to Saudi Arabia. More than 70% of its petrochemical outputs go to East and Southeast Asia.
The shift from West to East represents a significant opportunity for the Middle East’s petrochemical industry.
What are other Middle East downstream investment strategies in China? Saudi Arabia already faces increasing competition in crude oil supply to China from other producers such as Oman and Iran. Would this competition extend to the downstream sector? What strategies have NPC and other Middle East producers developed to capture a share of the Chinese market?”
Investing in Oil
Xinhua News Agency has reported that China plans to spend RMB180 billion (US$22.5 billion) in the oil refining and petrochemical sector in the next five years. The report includes comment from PetroChina that China will build “five 10-million-ton oil refining bases, two aromatic hydrocarbon production bases, four chemical fertilizer production bases and six large ethylene production bases” in the period. According to the plan, oil refining capacity will grow by over 45 million tons, to 170 million tons, by 2010.
China Raises Oil Product Prices to Help Refiners Cover Costs
Bloomberg – USA
March 26 (Bloomberg) — China, the world’s second biggest energy consumer, raised prices of oil products for the first time in eight months to help refiners …
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China plans to invest 22.5 bln dollars in oil refining sector in …
Xinhua – China
BEIJING, March 25 (Xinhua) — China plans to spend 180 billion yuan (22.5 billion US dollars) in the oil refining and petrochemical sector in the next five …
China’s oil giant sees 133.36 bln yuan net profit in 2005
Xinhua – China
BEIJING, March 25 (Xinhua) — The China National Petroleum Corporation, the country’s oil giant, scored a net profit of 133.36 billion yuan (16.61 billion US …