Sinopec boosting ethylene output

China Petroleum & Chemical Corp (Sinopec) plans to build new ethylene production plants in Shanghai, Ningbo, Zhejiang province and Wuhan, Hebei province and Fujian province. In Shanghai, Sinopec will build an ethylene cracker with an annual production capacity of one million tons, scheduled to be completed by 2008. In Ningbo, Sinopec plans to complete construction of a comparable facility by 2010. Sinopec is in talks with Wuhan government officials to set up a third ethylene plant. Sinopec is in talks with ExxonMobil and Saudi Aramco to build a US$3 billion ethylene plant with a 650,000 ton per year capacity in Fujian province. The new plants will use feedstock naptha, a principle component of ethylene, produced by Sinopec unit Sinopec Zhenhai Refining & Chemical. Sinopec said it plans to increase oil refining output to 33 million tons by 2010.