Sinopec & LyondellBasell to form second JV in China

China Petroleum & Chemical Corporation (Sinopec SNP) recently signed a memorandum of understanding with LyondellBasell Industries N.V. LYB to create a new 50-50 joint venture for developing a new propylene oxide and styrene monomer unit. This is a second such joint venture between the two companies.

 

The new unit will likely have an annual production capacity of 300 kilo tons of propylene oxide and 600 kilo tons of styrene monomer. The JV is expected to start the new facility’s construction early next year, which will bring the unit online by 2022.

 

Notably, China’s domestic market with a huge appetite for refined products will be the primary target for both companies.

 

The unit will be built in Zhenhai, Ningbo in China and complement the existing Sinopec LyondellBasell joint venture in the same area, currently operating as Ningbo ZRCC Lyondell Chemical Company Limited.

 

The non-binding contract can enable the involved entities to address the market, where demand for packaging, furnishing and construction materials is growing.

 

More than 60% of chemicals’ demand in the Asian markets is created by China. Also, 40% of the global chemicals’ growth is expected to be generated from the second largest economy in the world over the period of next 10 years.

 

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