Sinopec to boost Tianjin oil, gas, petchem investments

State-controlled Chinese energy firm Sinopec has signed an agreement with the northeast city of Tianjin to develop more oil, petrochemical, natural gas and hydrogen projects.

Details are scarce, but the goal is to help Tianjin become a new materials base as well as a logistics and sales centre for petrochemicals in northeast China, Sinopec said.

Investments by the company could amount to 70bn yuan ($10.3bn) during 2021-25, the Tianjin government said, although Sinopec did not announce a figure. Projects are also expected to include lubricants and geothermal.

Sinopec operates a 300,000 b/d refinery at Tianjin. It is already planning to expand its 6mn t/yr Tianjin LNG terminal to 10.8mn t/yr by 2023.

The company this month set up a new materials research centre at Ningbo in Zhejiang province. Ningbo plans to spend up to Yn400bn on new materials ventures in 2021-25.

Sinopec earlier this year set up the Yn5bn Sinopec Capital fund to focus on investments in new materials, new energy, energy conservation, big data and high-end intelligent manufacturing.

President Xi Jinping is pushing a "dual circulation" development model, under which China aims to pivot towards domestic consumption amid an increasingly hostile environment for global trade. This may entail a stronger focus on industries such as new materials and smart manufacturing.

By Karen Teo