PetroChina ties up with Qatar Petroleum on a JV project

PetroChina<601857><857>, the country's oil giant, is in talks with Qatar Petroleum International to jointly establish a petrochemical facility in China with annual production capacity up to 1 million tons, sources reported on Wednesday.

Its parent, China National Petroleum Corporation (CNPC) has signed a memorandum of understanding with Qatar Petroleum on Monday on the plan, sources reported from Doha.

A feasibility study on the joint-venture project has been carried out, which is not surprising to outsiders as China is always keeping a friendly relationship with the rich-oil country and it is encouraging oil producers in the country to invest in China.

The project is expected to be complete in 2013, but how much PetroChina will invest in the project and where it will be located have yet to be decided.

Moreover, PetroChina is planning to build a 10-million-ton refinery in Huludao of northeast China's Liaoning Province. It also will invest huge fund to establish another refinery in Singapore.