Industrial Gases joint venture in China
BOC and Sinopec Yangzi Petrochemical Corp. (Sinopec-YPC), a subsidiary of the Sinopec Group, have formed a joint venture known as Nanjing BOC-YPC Gases Company Ltd
(BYG) to meet expanding industrial gases requirements in Nanjing, China. BYG has entered into long-term supply agreements with two major industrial gas users in the area. These customers are an existing, large YPC Petrochemical Co. Ltd complex and a new, USD 3 billion integrated petrochemical complex now under construction by BASF-YPC Company Ltd, a joint venture between BASF Corp. of Germany and Sinopec-YPC. The new complex will make a range of products, many of which will be used in the production of plastics, coatings and textiles. It is expected to be completed early in 2005.
BYG’s first project is an initial investment of nearly USD 100 million by 2004. The investment, BOC’s largest in China to date, includes the acquisition of three existing air separation assets formerly owned by Sinopec-YPC, and the construction of an additional air separation unit. The completed facility will produce some 2600 tonnes per day of gaseous oxygen, over 2000 tonnes per day of gaseous nitrogen and liquefied product for the local merchant market.
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