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energytribune.com: Shell Loses to BP on Chinese Refinery

Posted on Nov. 26, 2007
By Lee Geng

BP is continuing its aggressive expansion in China, and its latest comes at Shell’s expense. Shell had been in negotiations with Sinopec and Kuwait Petroleum Corp. to build a 300,000-barrel-per-day refinery in Guangzhou, the capital of Guangdong, but China has selected BP. The refinery is slated for operation in 2010.

Both BP and Shell are active in China’s downstream. BP holds a 9.4 percent stake in Sinopec Zhenhai Refining and Chemical Co., China’s largest. Shell holds a 50 percent stake in an ethylene cracker in Guangdong Province that produces 800,000 tons per year. CNOOC holds the remaining 50 percent.

Shell has been trying to gain a foothold in China’s refining sector after its hopes for a share in a new CNOOC refinery were dashed. The two ended talks late last year over a $2.5 billion, 240,000 bpd refinery CNOOC is building at the site of the Guangdong ethylene cracker.

http://www.energytribune.com/articles.cfm?aid=705

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