Trade ties between Kuwait and China strengthen with oil refinery project

Kuwait has been increasing crude oil exports to mainland China during the last year, an increase of 32% to about 127,000 barrels per day. Ties between Kuwait and China have been strengthened by this increasing trade. Now a US$9 billion refinery project which will be jointly owned by Kuwait Petroleum Corp., the Petrochemical Industries Company (PIC) and Sinopec, has been approved by the Chinese Ministry of Environmental Protection. The new oil refinery is going to be built on Donghai Island in Guangdong Province. The refinery is expected to be able to handle 300,000 barrels per day. Both KPC and Sinopec will have a 50% share in the joint venture. Kuwait is the second Arab oil producer allowed to have an oil refinery in China. Saudi Arabia was the first to get a foothold, with a refining and petrochemical joint venture in Fujian province last year. (February 25, 2011)