(With photos)

TOKYO, Aug 15 (KUNA) -- Kuwaiti-Chinese refinery and petrochemical complex project in south China's Guangdong Province is now expected to cost USD 8-9 billion, making it the largest Sino-foreign joint venture here, said Saad Al-Shuwaib, CEO of state-run Kuwait Petroleum Corporation (KPC)Kuwait Petroleum Corporation (KPC).

Al-Shuwaib revealed the figure in an interview with the Beijing-based Caijing (Finance and Economy) magazine during his visit for the 2008 Beijing Olympics opening.

The Guangdong project was previously estimated at USD five billion, already surpassing another multi-billion dollar refining and petrochemical project in the neighboring province of Fujian by Saudi Aramco and its alliances.

Al-Shuwaib also noted the National Development and Reform Commission (NDRC), China's top economic planning agency, has approved the mega project, the Chinese-language magazine said.

The two countries signed MoU in 2005 to construct the integrated complex as a joint project, paving the way for KPCKPC to participate in the long-term development of oil industry in the world's fastest-growing major economy.

Kuwait Petroleum International (KPI)Kuwait Petroleum International (KPI), the international refining and market unit of KPCKPC, has formed the joint venture with China's biggest oil refiner Sinopec Corp. for the plant, to be located in the Nansha area of provincial capital Guangzhou.

The refinery will be designed to process 100 percent Kuwaiti crude supplied by KPCKPC, with a capacity of 15 million tons per year, or 300,000 barrels per day (bpd), and the ethylene cracker unit is slated to have an annual production capacity of one million tons.

While offering optimistic outlook for the Chinese economy after the Beijing Olympics, Al-Shuwaib said, "KPCKPC's investment in the Nansha project won't be affected by China's economic situation even if it slides down slightly."

Meanwhile, Al-Shuwaib held talks with Sinopec Chairman Su Shulin in Beijing, where they shared the view that KPCKPC-Sinopec project in Nansha should meet the highest environmental protection standard amid concern over the impact on the local environment.

Al-Shuwaib and Su also discussed future crude supply from the major Middle Easten oil producer. Kuwait's crude oil exports to China reached 115,000 bpd in 2008 from 18,000 bpd in 2004, a six-time increase, with KPCKPC planning to hit 50,000 bpd by 2015.

In a separate meeting with Andrew Liveris, Chairman and CEO of US giant Dow Chemical Co., as well as other Dow high level heads from Mexico, Thailand and the Middle East, the two sides exchanged views on their joint ventures and global cooperation.

Dow said last month it continues to make progress on the USD 11 billion joint venture with Petrochemical Industries Company (PIC), KPCKPC's wholly owned subsidiary. KPCKPC and Dow are keying to close the deal at the earliest, which would create the world's largest petrochemical corporation.