China's Sinochem Ties Up With Private Chemical Group In Oil Trading
BEIJING/SINGAPORE, Jan 10 (Reuters) - State-run Sinochem Group has agreed on a framework deal with China's private chemical giant Hengli Group to cooperate on imports of crude oil and marketing of refined fuel, Sinochem said in a statement late on Tuesday.
Sinochem gave little details on the agreement, but a source briefed on the matter said the two firms were looking to form a joint-venture in oil trading and marketing. The source did not want to be named due to rules on talking to media.
A cooperation will boost the trading portfolio of the state firm which operates only one major refinery in China and offer the private chemical group expertise in global oil trading.
Hengli is expected to start trial runs at a 400,000-barrel-per-day new refinery complex in the Changxing island of northeast Dalian city in October this year, Sinochem said.
A second source with knowledge of the deal said Sinochem was likely to purchase crude on behalf of Hengli and could start hunting for cargoes around mid-2018.
A Sinochem spokeswoman said she was unable to comment on any details of the agreement.
This is not the first time Sinochem has tied up with a private entity. The group, an old-time oil and chemicals trader that flourished in the 1990s, owns part of Shandong Hongrun Petrochemical Co, an independent refiner based in east China.
Hengli is already operating a 6.6 million tonnes per day plant making purified terephthalic acid (PTA), the world's largest. PTA is a feedstock for producing polyester.
The firm, with businesses spanning machinery and property, had an annual turnover of 251.6 billion yuan ($38.56 billion) in 2016, according to its website.
($1 = 6.5250 Chinese yuan renminbi)
(Reporting by Chen Aizhu in Beijing and Florence Tan in Singapore; Editing by Himani Sarkar)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension