ExxonMobil Corp has signed a deal to build a petrochemical complex and liquefied natural gas (LNG) terminal in southern China, state media reported, the second major foreign investment in the world's top chemical market in as many months. China is allowing greater access by global majors and local independents to its massive chemicals market to feed plastics, coatings and adhesives to the fast-growing consumer electronics and automotive sectors.
Exxon would be one of only a few international oil majors to invest in LNG infrastructure in China as the country tries to shore up supplies amid a switch to gas-fired boilers by factories and households as part of the government's battle against smog.
The preliminary deal was signed with the local governments of Guangdong province and the coastal city of Huizhou as well as state power company, Guangdong Yuedian Group, according to the Guangzhou Daily. It did not give a value for the deal.
Exxon's plan comes after a similar agreement announced in July by German chemical giant BASF to build a $10 billion plant, also in Guangdong and including a steam cracker producing 1 million tonnes a year of ethylene.
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