BOC and Sinopec SPC to form industrial gases joint venture in Shanghai
BOC and Sinopec Shanghai Petrochemical Company Ltd. (SPC), a subsidiary of Sinopec Corp., have signed a letter of intent to form a joint venture (JV) to meet the industrial gases needs of SPC in the Jinshan District, Shanghai, China.
The JV expects to invest initially in the production of nearly 3,000 tonnes per day of air separation gases capacity through the acquisition of SPC's existing industrial gases assets and then to commence construction of a new world-scale air separation unit (ASU).
The scale economics of the project, with its reliable, multi-plant arrangement, will result in the JV becoming a major industrial gases supplier in the region. The JV will support SPC's fast growing petrochemical business and those of additional customers in the area. The Jinshan District where the JV will be located is one of the major areas of petrochemical investment in China and, aside from the SPC complex, includes the nearby Shanghai Industrial Chemical Park, where a number of global and local chemical companies are located.
The JV will be the second industrial gases venture that BOC has entered into with a Sinopec company. In April 2002, BOC and Sinopec Yangzi Petrochemical Corp. (Sinopec YPC), a subsidiary of the Sinopec Group, formed a joint venture known as Nanjing BOC-YPC Gases Company Ltd. (BYG) to meet expanding industrial gases requirements in Nanjing, China. BYG has entered into long-term supply agreementswith two major industrial gas users in the area, the large YPC Petrochemical Co. Ltd complex and the BASF-YPC Company Ltd integrated petrochemical complex, both located in the Nanjing Chemical Industry Park.
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