Sinopec proceed with JV refinery in Guangzhou

China’s state-owned oil companies are extending their cooperation with foreign oil giants along coastal areas in a bid to secure steady crude oil supply, with an aim to feed an anticipated 580-600 million tons of oil demand by 2020. Despite concerns on oversupply in capacity in the next decade, China is expected to attain roughly 667 million tons of refining capacity by 2020, with more than 10 million tons annual capacity in each refinery. The proposed JV refinery between Sinopec and Kuwait Petroleum Corporation (KPC) in Nansha in south China’s Guangzhou is under way. The refinery JV will cover refining, petrochemicals and downstream marketing, including retail. (May 25, 2008)