ExxonMobil and BASF to build petchem complexes in China

ExxonMobil Corporation on Thursday, 6 September 2018 said that it has signed a preliminary agreement with the Guangdong provincial government to build a petrochemical complex along the coastal city of Huizhou. 

The multi-billion dollar project includes a 1.2 million tons/year ethylene plant, 2 polyethylene lines and 2 polypropylene lines. Exxon also agreed to invest in a  liquefied natural gas (LNG) terminal here to supply gas to this province. Further details would only be released in the later date.

On 10 July 2018, German’s BASF SE reportedly signed a non-binding Memorandum of Understanding with the Guangdong provincial government to build a chemical complex here. 

The so-called ‘‘Verbund’ complex costs approximately USD 10 billion and is broken down into two phases. The initial phase consists of petrochemical plants, including a steam cracker with a planned capacity of 1 million tons/year of ethylene should come online by 2016.

Guangdong is one of the most populated provinces in China that home more than 110 million residents with an annual GDP of 7% and might grow quicker in the coming years.