Sinopec and SK Energy to form JV in Wuhan

South Korea's largest refiner SK Energy announced on Wednesday that it had agreed to form a joint venture in Wuhan, Hubei Province with China Petroleum & Chemical Corporation (Sinopec).

SK Energy could acquire 25-35% stake in the naphtha cracker in Wuhan in central China, however, exact size of the investment is not given by SK.

The joint venture will start production in 2011 with an annual output of 8.8 million tons of ethene. The move is considered as a milestone of SK Energy's business operation in China, said Shin Heon-Cheol, vice chairman and CEO of SK Energy.