Qatari firms, Chinese petrochem giant in deal

29/03/2015 07:45 AST

Suhaim Bin Hamad Enterprise Group and Qattra Investment and Development Group (QID) have entered into a partnership in transaction with the Chinese Shandong Dongming Petrochemical Group.

In what’s considered to be the first and largest transaction of the kind between a Chinese petrochemical company and Qatari investors, the transaction enables the Qatari partner to acquire equity interest in the Chinese Group.

Shandong Group owns and operates the largest oil refinery privately held in China with complete oil and gas integrated infrastructure. Shangdong has various corporations working in construction, transportation and environmental protection. The Group with assets evaluated at an estimated QR15bn (RMB26bn) witnesses a huge growth with an annual turnover of RMB12bn. It has been ranked among the top 500 companies in China with a 179 ranking through 2012-2013.

The transaction included various new projects and expansion of current projects, the most important one is the erecting of an LNG storage facility with a capacity of 3 million metric tons.

A similar deal was reached with the Government of Quanzhou with equal capacity as a participation in the development of the economic and industrial renaissance of the province. The transaction also includes construction and operation of 1,000 petrol retail stations servicing a substantial part of the needs of the population in five provinces. The stations were designed in accordance with the best international practices with special lanes for diesel and high speed pumps, automatic and manual wash facilities, oil change services and vehicle maintenance workshops.

Hamad bin Suhaim Enterprises is a Qatari company, active in real estate, trade and industry. Sheikh Hamad bin Suhaim, chairman of the Group, said the deal represents a new dimension and a new launch of performance of Qatar private investment. “The deal is a quantum leap in the Qatari private investment performance,” he said.

QID is active in various sectors such as real estate development, petrochemicals, high tech products and information technology. Sheikh Nasser bin Khalid, Chairman, QID hailed Qatari leadership for extending support to the country’s private sector. Ibrahim El Tenay, CEO of the Group said the Chinese partnership marks a giant leap in the private investment in Chinese market.

The Peninsula