China may unveil aid plan for petrochemical sector

Author: Jim Bai,Jacqueline Wong

BEIJING, Feb 3 (Reuters) - China may unveil a plan this month to boost its petrochemical sector after introducing incentives to support the auto and steel industries to counter the impact of slowing economic growth, state media said.

The plan needs to be reviewed by industry experts and coordinated between two ministries before being submitted to the State Council, China's cabinet, for final approval, the Shanghai Securities News said, citing an official involved in the plan.

"But given the urgent need to stimulate domestic demand and revive industries, the plan is expected to be announced this month," the unnamed official was quoted as saying.

The stimulus plan likely includes 100 billion yuan ($14.6 billion) in investment to upgrade the quality of oil products and 400 billion yuan ($58.4 billion) for the construction of dozens of new petrochemical projects and to support overseas acquisitions of oil resources.

In addition, the stockpiling of commercial oil is included in the plan while measures to support the chemical fertiliser industry is also being considered, the report said, without giving more details.

Last month, China announced a wide ranging plan, including tax cuts and subsidies, to help the auto and steel sectors. ($1=6.847 Yuan)