 |
Ten Billion Yuan Deal Signed for Petrochemical, Natural Gas Development
The Zhonghai Petrochemical Oil Corp. signed a deal in Haikou Saturday to invest about 10 billion yuan in chemical fertilizer, natural gas development, a natural gas pipeline and power plant upgrading projects in the island province of Hainan in the south.
Wu Zhenfang, general manager of the company, signed the deal with leading department officials of the Hainan provincial government, representatives of the Bank of China and the Hainan Provincial Branch of the bank over the deal.
Under the deal, a 3 billion yuan petrochemical project will be completed by November, 2003, which has a designed capacity of producing 450,000 tons of synthetic ammonia and 800,000 tons of carbamide.
According to the strategy mapped out by the China National Offshore Oil Corp.(CNOOC), 5 billion yuan will be invested to build a national gas field Dongfang 1-1.
Under the deal, the first-stage project of the field, which is expected to be finished in September 2003, has a designed capacity to produce 1.6 billion cubic meters of natural gas for consumption by the chemical fertilizer plant, the Yangpu Power Plant and Haikou residents.
For that end, 540 million yuan will be used to build a 254 km natural gas pipeline linking Dongfang city in Hainan, the Yangpu Power Plant and Haikou city.
By 2005, the production capacity of the field will be raised to 2.4 billion cubic meters annually.
A number of chemical fertilizer projects are also being considered for 2005. The projects under consideration are expected to produce 600,000 tons of composite fertilizer annually, 500,000 tons of carbinol, 50,000 tons of formaldehyde, and 50,000 tons of polyoxymethylene.
Under the plans, a petrochemical center with a designed capacity to produce 2.6 million tons of petrochemical products will be set up in Dongfang city in Hainan in three to five years.
According to the deals signed between the Bank of China and its Hainan branch and the company, the bank will offer support for the petrochemical projects through a loan arrangement.
In This Section
|