ExxonMobil Corp said on Thursday it has signed a preliminary deal to build a petrochemical complex and invest in a liquefied natural gas (LNG) terminal in China, the latest major foreign investment in the world's top chemicals market.
The agreement with the provincial government of South China's Guangdong Province is worth billions of dollars and includes a 1.2 million-ton-per-year ethylene plant, two polyethylene production lines and two polypropylene lines in Huizhou, one of Guangdong's coastal cities, it said.
Exxon also agreed to participate in a provincial project to build an LNG terminal in Huizhou and to supply LNG for it, it said. No details about the capacity of the project or timeline were given.
China is allowing greater access by global majors and local independents to its massive chemicals market to feed plastics, coatings and adhesives to the fast-growing consumer electronics and automotive sectors.
Exxon would be one of only a few international oil majors to invest in LNG infrastructure in China as the country tries to shore up supplies amid a switch to gas-fired boilers by factories and households as part of the government's battle against smog.
The news comes after German chemical giant BASF announced plans in July to invest $10 billion to build China's first wholly foreign-owned chemicals complex, also in Guangdong. The project includes a steam cracker producing 1 million tons a year of ethylene.
Details of the ownership structure of Exxon's chemical plant and LNG investment were not released either.
Editor:Cherie
