MOSCOW (MRC) -- Two Chinese companies, Beijing BECA Sci-tech Co Ltd and Sinopec Engineering Inc have inked a memorandum of understanding (MOU) with the Sarawak state government to invest USВ5 billion for the development of an integrated oil and gas (O&G) complex in Lawas, said Theedgemarkets.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said Sarawak’s O&G policy welcomed the participation from the private sector in the development of the state’s O&G sector.
"This MOU is an auspicious step towards expanding our capacity and capability in the sector,” he said at the signing ceremony here.
Also present were Deputy Chief Minister, Datuk Amar Awang Tengah Ali Hasan, who is also Minister of Industrial and Entrepreneur Development, Beijing BECA Sci-Tech president Hao Liang and Sinopec Engineering vice-president Zhao Xiangdong.
Hao said the MOU marked a significant milestone in the petrochemical development project.
"To ensure the project is operational as soon as possible and contribute to Sarawak’s economic development, BECA will ensure that this industry is further refined, making it stronger and bigger, while working with the people of Sarawak to create a better future," he added.
The joint venture project will be implemented in stages starting from the fourth quarter of this year and is expected to be completed by 2022.
As MRC informed earlier, in 2016 Russian petrochemical company Sibur was in talks with shareholder Sinopec about investing in a planned gas chemical plant in Russia's Far East. Sibur plans to buy gas from fields which Russia's Gazprom will develop in Eastern Siberia.
Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.
MRC