From East Asia Intel, subscription. ABU DHABI — China has approved a $5-billion energy deal with Kuwait that could result in strategic ties between the two nations. Beijing has approved a Kuwaiti plan to construct a $5-billion oil refinery in the Guangdong Province in southern China. The Kuwait-based daily Al Rai Al Aam reported on April 11 that the refinery, built in Guangzhou, would have a 300,000-barrel per day capacity.
The decision by China's National Development and Reform Commission creates a joint venture between the Chinese oil company PetroChina and the state-owned Kuwait Petroleum Corp., Al Rai Al Aam reported.
In December 2005, China and Kuwait signed a memorandum of understanding to construct the refinery and a petrochemical plant in Guangzhou. Industry sources said the agreement could pave the way for strategic relations between the Gulf Cooperation Council state and China, which has been seeking new energy markets.
And the Chicoms are a huge energy market.