BEIJING — Phillips Petroleum Co. of Bartlesville, Okla., has signed a letter of intent to cooperate with China Petrochemical Corp. (Sinopec) of Beijing in developing projects in China.
Phillips and Sinopec agreed to study the feasibility of expanding a high density polyethylene plant presently under construction in Jinshanwei, China. The plant is being built as a joint venture between Phillips and Sinopec.
The plant is scheduled to be completed in 1998, and will make 220 million pounds of HDPE a year.
The facility uses Phillips' proprietary production technology. Phillips holds a 40 percent interest in it.
Phillips and Sinopec will consider expanding the plant by an additional 440 million to 550 million pounds a year, with Phillips gaining a 40-50 percent interest in the additional capacity.
Phillips also said it is studying several other projects with Sinopec subsidiaries, including construction of an ethylene cracker, making Phillips HDPE pipe, styrenic resins, polypropylene and other PE resins.