China Petrochemical (0386.HKG, 600028.SHA), known as Sinopec, and several Chinese banks are in negotiations to invest US$1 billion in a Texas clean-energy project in what would be one of the largest investments by Chinese companies in the US power sector, The Wall Street Journal reported. The US$2.5-billion Texas project has already received tax benefits as well as grants of up to US$450 million from the US Department of Energy, and the city of San Antonio has signed a contract to purchase its electricity for 25 years. The move is especially significant for Sinopec, which is looking to build a relationship with the US as it continues to acquire energy reserves and seek production expertise. Nonetheless, Chinese oil-industry officials remain wary of the US criticism their energy investments may provoke.
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