OREANDA-NEWS. October 20, 2011. Qatar Petroleum International and Royal Dutch Shell have signed a framework deal with China National Petroleum Corporation to build a joint refining and petrochemical complex in China.

The agreement is a step forward for the major project that will give Qatar Petroleum and Shell their first solid foothold in the world's second largest fuel consuming market after on and off negotiations for more than 2 years.

The Chinese oil major said that the Taizhou refining and petrochemical project, in southeastern Zhejiang province will use imported condensate and other raw materials to produce ethylene and other petrochemicals. The agreement further clarifies work scope and targets for each side, reflecting sincere intentions to cooperate.

Mr Abdullah al Attiyah oil minister of Qatar and Mr Wang Yong head of the state owned Assets Supervision and Administration Commission which is both a regulator and shareholder in most of China's big state owned companies, vowed in January to strengthen cooperation in the oil and gas industries and talked about the joint venture project in China.

The project was expected to include 400,000 barrel per day oil refining facility, 1.2 million tonnes per year ethylene cracking unit and a crude oil berth able to dock very large crude carriers.