The Shanghai Petrochemical Project is a Sino-British joint venture to build a new petrochemicals complex in Shanghai. The partners in the proposed undertaking include BP China Investments, a subsidiary of UK-based BP, and the local Shanghai Petrochemical Corp (SPC), a subsidiary of China Petrochemical Corp (SINOPEC). The venture will also involve key utility suppliers. The two companies will create a 50:50 joint venture company to operate from end 2001. A framework agreement for the project was concluded in October 1999 and the Chinese authorities approved the project in November 1999.
The new company will build an ethylene cracker with initial capacity of 650,000 tonnes/y. This will eventually rise to 900,000 tonnes/y. The cracker will probably be situated in Caojing near Shanghai. Total investment in the project is expected to be $2.5bn to $3bn and this will rank as the second largest foreign investment project in China - after Royal Dutch/Shell's planned $4.5bn petrochemicals complex in southern China.
BP has already announced plans for the construction of a 260,000 tonnes/y acrylonitrile unit and a 200,000 tonnes/y polypropylene unit. When at full capacity, planned for 2005, the plant will be capable of turning out ethylene compounds and will include a 500,000 tonnes/y polyethylene unit, a 500,000 tonnes/y styrene unit and the plant will be producing polystyrene, ethanol and acetates. Ninety percent of the joint ventures output will be for internal consumption.