Shell and CNOOC agree to spend $4billion to build

Shell and CNOOC agreed to spend $4billion to build an ethylene plant

Royal Dutch Dutch/Shell Group, Europe's second largest oil company, announced its cooperation with China National Offshore Oil Corp The signing of the agreement will cost US $4.3 billion to build an ethylene plant, which, according to the Ministry of industry and information technology, will be the largest foreign investment case in Chinese Mainland so far

shell said that the new plant located in Guangdong Province is expected to be completed in 2005, with an annual output of nearly 2.3 million tons and sales of $1.7 billion. Shell and China National Offshore Oil Corporation will hold half the equity of the new plant

the fuel and chemical market in Chinese Mainland has unlimited business opportunities, attracting shell and rivals such as Exxon Mobil Corp. (us; XOM) and BP PLC (gb:bp/) to compete for investment

BP, Europe's largest oil company, recently announced that it would double the investment in Chinese Mainland next year by building a chemical plant and several gas stations, hoping to compete with its rivals in Chinese Mainland, the world's second largest energy market

Gary Dirks, President of BP China branch, said that BP will invest US $800million in Chinese Mainland next year, cooperate with Sinopec China Petroleum Chemical Corp. (CH; ch600028) to build an ethylene plant in Shanghai, and cooperate with PetroChina Co (HK; hk857) Yang lieyou, the spokesman of pingkuang group who can get the sample, told Caixin to set up a gas station in South China. Since entering Chinese Mainland in the 1970s, the total investment of BP in the mainland has reached 2.5 billion US dollars

shell is optimistic that the demand for ethylene and other chemicals in Chinese Mainland is expected to double before 2010. Ethylene is mainly used in the production of plastic bags and food packaging

shell, ExxonMobil and BP are the largest foreign investors in Chinese Mainland. As China's energy market is expected to grow at an average annual rate of 4% in the next few years, attracting global players to rush in. So far in 2000, these enterprises have invested more than $10billion in the mainland

Christine Pu, an analyst at Deutsche Bank in Shanghai, said, "Foreign oil companies have set up factories in the mainland, hoping to compete for the big cake of the mainland energy market.

China National Offshore Oil Corporation is CNOOC Ltd. (HK; hk883) Corporation, a Hong Kong listed company, and Sinopec is the largest ethylene manufacturer in the mainland. Sinopec has agreed to jointly build ethylene plants with ExxonMobil, BASF Ag and British stone respectively after measuring their output voltage oil