Apr. 27, 2010 (China Knowledge) - Sinopec Kantons Holdings Ltd<0934>, a Hong Kong-listed subsidiary of China Petrochemical Corp, yesterday said that it plans to set up a joint venture with a subsidiary of PT Batam Sentralindo, the operator of the Batam Free Trade Zone in Indonesia, sources reported.

In a statement filed with the Hong Kong Stock Exchange, Sinopec Kantons said that the two companies plan to build the JV on Batam Island. They will also build and operate a 2.60 million cubic meter oil storage project and other facilities.

The total investment is expected to hit US$815 million, according to the statement.

The JV is likely to sign a land leasing agreement with PT Batam Sentralindo, said Sinopec Kantons in the statement.

Listed in Hong Kong in 1999, Sinopec Kantons is mainly engaged in oil products trading and the provision of crude oil jetty services.