Qatari investment firms Qatra for Investment & Development (QID Group) and Hamad Bin Suhaim Enterprises have signed a $5bn deal to acquire 49 percent of China’s Shandong Dongming Petrochemical Group, the firms said on Monday.
The deal will be finalised by the fourth quarter of 2015. The money will be used to finance a number of key projects that Shandong is currently working on, Ibrahim El Tinay, chief executive of QID, told reporters at a press conference in Doha.
“These projects will include building 1,000 petrol stations across six provinces in China and a liquefied natural gas (LNG) terminal with a 3 million tonne per annum capacity in the region of Qinzhou,” he said.
How the $5 billion investment would be split between the two Qatari investors was not disclosed.
The stations will be built in a 300-kilometre radius of the company’s Heze refinery in Shandong province in eastern China, which would provide a third of its output as supply to the stations, according to a joint statement from the three parties.
The LNG terminal will be built in the municipal region of Qinzhou in southern China and will include the construction of a terminal, jetty, regasification facilities and storage.
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