Sinopec, GS Aromatics enter agreement on Qingdao project

China National Petrochemical Corp (Sinopec Corp) and South Korea's GS Aromatics have signed a framework agreement on the Qingdao Lidong Chemical Co Ltd, sources reported.

Under the agreement, the two sides will jointly manage the JV petrochemical company, in which GS Aromatics holds 60% stake.

It is also reported Sinopec will secure part of the shares in the joint venture, according to GS Caltex, the parent of GS Aromatics.

GS Group hopes that the strategic alliance with the Chinese oil giant will lay the groundwork for the South Korean company to enter the energy market in China.

Jointly invested by GS-Caltex, Oman Oil Company S.A.O.C and Qingdao Redstar Chemical Group, Qingdao Lidong Chemical Co Ltd is the largest one-off foreign invested enterprises in East China's Shandong province. It has an annual capacity of producing 110 million tons of aromatic hydrocarbons.