QPI , PetroChina & Shell sign LOI for refinery and petrochemical manufacturing and marketing in China
In the presence of Sheikh Tamim Bin Hamad Al-Thani, the Heir Apparent of the State of Qatar, Qatar signed on June 23 with PetroChina Company Limited (PetroChina), and Shell (China) Limited (Shell), a Letter of Intent (LOI) to commence joint preliminary studies to assess the viability of building a refinery and petrochemical manufacturing complex and marketing its products in China. The signing was witnessed also by Mr. Xi Jinping, Vice President of the People’s Republic of China and Sheikh Hamad Bin Jassem Bin Jabor Al-Thani, Qatar’s Prime Minister and Minister of Foreign Affairs.
The LOI was signed by Abdulla Bin Hamad Al Attiyah, Deputy Prime Minister, Minister of Energy and Industry, Chairman of Qatar Petroleum International, Mr. Jiang Jiemin, President of China National Petroleum Corporation (CNPC), and Ms. Linda Cook, Executive Director of Royal Dutch Shell plc.
The integrated refinery and petrochemical complex will have production capabilities to produce refined fuels and petrochemical products. PetroChina will have a 51% shareholding, QPI 24.5% and Shell 24.5%.
Abdulla Bin Hamad Al Attiyah said: “This step will help draw up a road map for setting up economic bridges between Qatar and China and opens investment opportunities.” He added: “On this occasion, I am very pleased that Shell has joined this first project of Qatar Petroleum International in China, and pleased to be partnering with PetroChina. We have here a great opportunity for our respective companies to reinforce their business relationship and to play a significant role in the refining and petrochemical sectors in China.”
Mr. Nasser Al-Jaidah, QPI CEO also added “We have established for QPI short-range and long-range performance targets. This project is a significant addition to QPI’s portfolio. By associating with strong partners like PetroChina and Shell, we are confident that this first petrochemical project for QPI will rank in the top leading projects in China and in the world. ”
Mr. Jiang Jiemin of CNPC said: “By building the integrated refinery and petrochemical complex jointly with QPI and Shell, the cooperation in the petrochemical sector between CNPC, and Qatar (QPI) and international oil companies will be further strengthened and promoted.”
Ms. Linda Cook of Shell said: “Shell is pleased to continue building its partnership with QPI and PetroChina to meet China’s growing energy needs. This project builds on a strong foundation of existing activities in Qatar and China, both of which are strategic to Shell. We are committed to leveraging our strong partnership with both companies and look forward to strengthened ties with the Chinese market.”
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