China, Russia plan a joint petrochemical project in China

China's energy conglomerate China Energy Company Limited, or CEFC signed with Russia’s oil giant Rosneft on Friday to plan a petrochemical project in China, a further step to deepen the cooperation after CEFC agreed to buy 14.6 percent of Rosneft's shares.

The two energy tycoons signed the agreement at the margins of APEC summit to perform a joint preliminary study of possible construction of petrochemical facility in southern China’s Hainan Province, according to Rosneft’s press release.

The two companies will set up joint working teams to discuss technical configurations of the project as well as commercial and economic matters, Rosneft said.

The joint petrochemical project in plan would be the latest step for the two companies’ cooperation after they signed a strategic cooperation agreement in July 2017 to collaborate in oil exploration, production, refining and product trading as well as financial services.

Later in September, Swiss commodities trader Glencore announced to sell 14.6 percent stake in Rosneft to CEFC.

Although Russia is a major oil and gas exporter, there are few foreign oil companies entering the business in the country due to market barriers and policy risks, China Business News reported on Friday, citing oil industry experts.

The two companies’ cooperation, which coordinates CEFC’s local business with global development and covers the full industry chain from exploration to financial service, can be regarded as a new cooperation model for China’s oil and gas industry, the report said.

(CGTN)