PetroChina, Sinopec to Invest $22 Billion in Petrochemical Projects

PetroChina and Sinopec have signed an agreement with the Zhejiang government on six petrochemical projects worth 139.1 billion yuan ($22 billion), the official China Securities Journal reported.

The report said the two companies would work with Zhejiang provincial government to strengthen the supply of natural gas and refined oil, and build facilities, without citing sources.

PetroChina would cooperate with Zhejiang to promote a project in Taizhou and to build compressed natural gas and liquefied natural gas plants for PetroChina Kunlun Gas and Quzhou government, the newspaper said.

Sinopec would focus on development of a long-distance natural gas pipeline between Xinjiang and Zhejiang, and Wenzhou Sinopec LNG projects, it said.

In October, China National Petroleum, parent of PetroChina, said it had signed an initial agreement, together with Shell and Qatar, with the local authorities in Zhejiang for a proposed oil refining and petrochemical joint venture.