March 29, 2005
Pequiven and Sinopec signed fertilizer and petrochemicals MOU

(BNamericas.com) - "The Pequiven petrochemicals subsidiary of Venezuela's state oil firm PDVSA has signed a memorandum of understanding (MOU) with China's China Petroleum & Chemical Corporation (Sinopec), Pequiven said in a statement the MOU agrees to study the possibility of joint ventures in the fields of fertilizers and petrochemicals, the statement said.

The document details 'petrochemicals development based on refining streams,' which is a novelty since most petrochemicals projects signed by the Chávez administration, such as the Metor joint venture between Pequiven and Mitsubishi, are based on the processing of natural gas. Another PDVSA subsidiary, Proesca, will get involved in the building of a new plant together with Pequiven and Sinopec to tap into the refining stream.

Both companies will study the 'likely construction of a new fertilizers plant' at the El Tablazo complex in oil-rich Zulia state. Cooperation in 'infrastructure and services' is also mentioned.

The projects will be in 'José, El Tablazo and CRP (Centro de Refinación Paraguana), Pequiven's main production centers in Venezuela. Sinopec will also aid Pequiven in building the Complejo Industrial Gran Mariscal de Ayacucho (CIGMA)' in the natural gas-rich region of Guiria, Sucre state 'to industrialize the gas from the country's Venezuela's largest gas reserve'.

Pequiven directors Polia de Sáez and Raul Romay and Sinopec senior deputy president Wang Tianpu signed the MOU".