The integrated mega-project is to be sited in the coastal province of Fujian.

According to the insider, “The project is moving ahead. Bids for engineering contracts are being evaluated and will be awarded as soon as July.”

“Both ExxonMobil and Saudi Aramco are now assured of the market access [and] market access was agreed among the parties involved before Saudi Oil Minister Ali al-Naimi's visit to Beijing in April,” added the informant.

The new complex will be built on the site of an existing Sinopec refinery and will boost its output from 4 million tonnes per year to 12 million tonnes per year. An 800,000 tonnes per year ethylene plant will also be built on the site.

Operations are slated for commencement in 2006 or 2007, although the ethylene plant will not begin operations until at least 2010.