Are you sure?

Sinopec ties up with Henan for oil, gas businesses

China's Sinopec Group, parent of Sinopec Corp, signed a framework deal on oil and gas cooperation with central China's Henan province, domestic media said, following a similar deal with coastal Fujian last month.

The two parties agreed to further expand Sinopec Corp's Luoyang refinery in the coming three to five years while considering advancing a methanol-to-olefins plan in Sinopec's Zhongyuan Petrochemical Company, the Henan Daily, a newspaper run by local government, reported.

Luoyang has planned to invest about $500 million to add a 450,000-ton-per-year paraxylene facility in the next three years while boosting refining capacity to 200,000 barrels per day from the present 120,000 bpd by 2011, its president told Reuters in an interview in March.

Henan would cooperate with Sinopec to expand the latter's distribution network of refined oil products in the province, and Sinopec would increase natural gas supply to the most populous province via a planned pipeline.

The report did not specify likely investment involved in these projects.

At the end of 2007, rival CNPC, parent of PetroChina, also signed a similar cooperation deal with Henan, aiming to gain support from local government for its gas and oil business expansion. (Reuters)