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N E W S
July, 2006


BASF and Sinopec Reach Agreement On Expansion of Nanjing Cracker JV

BASF and Sinopec have confirmed CW’s earlier report that they will expand their ethylene and derivatives joint venture at Nanjing, China (CW, Sept. 28/Oct. 5, 2005, p. 19). The companies will invest $500 million by 2009 to increase capacity for several basic petrochemicals and build plants producing new, downstream products. The 50-50 jv, BASFYPC Co., has operated since mid-2005..

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Dow Acquires Chinese Water Services

Dow Chemical says it has agreed to acquire water services firm Zhejiang Omex Environmental Engineering (OEE; Huzhou, China). Terms were not disclosed. Dow says the acquisition will expand the company’s operations into three critical areas for water treatment: ultrafiltration, membrane bio-reactor membranes, and electrodeionization (p. 20). Dow’s existing water treatment operations include its Filmtec reverse osmosis and nanofiltration elements business, as well as ion-exchange resins and titanium-based arsenic removal media.

Shell Eyes Coal-to-Fuels and Chemicals Project in China

Shell and Shenhua Ningxia Coal Industry Co. (Shenhua-Ningmei) have signed a joint study agreement for a coal-toliquids project in China’s Ningxia Autonomous Region using Shell technology. The partners say they plan to investigate the feasibility of a plant with a production capacity of 70,000 bbl/day of oil and chemical products at the Nindong coal center, one of the 13 major coal centers approved for construction by the Chinese government. The product slate can be adjusted to meet market needs, but would typically include gasoil, naphtha, kerosene, base oils, light detergent feedstock, heavy detergent feedstock, waxes, and LPG, a Shell spokesperson says. Reports say investment in the facility will be $5 billion-$6 billion, and that Shell will hold a minority stake. Shenhua-Ningmei is part of the Shenhua Group, China’s largest coal producer. Shenhua is also studying a coal-to-chemical project with Dow Chemical.

 
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