press release

Unocal forms joint venture company for China LPG terminal

El Segundo, Calif., Sept. 18, 1996 - Unocal Corporation said today that its subsidiary, Unocal Yangtze, Ltd., has joined an equity Sino-joint venture company that plans to construct and operate a liquefied petroleum gas (LPG) terminal near the city of Zhangjiagang in Jiangsu Province of the Peoples' Republic of China. Zhangjiagang is located near the port city of Shanghai.

The new company, Zhangjiagang Oriental Unocal Energy Company, Limited (ZOUEC), will be headquartered in Zhangjiagang.

The partners in the joint venture include Unocal Yangtze, Ltd., 30 percent; Zhangjiagang Free Trade Zone Economic Development Company, 5 percent; and Oriental Petroleum (Yangtze) Limited, a subsidiary of China International Trust & Investment Corporation Hong Kong (Holdings) Limited (CITIC Hong Kong), 65 percent.

"This project marks Unocal's entry into the growing China market, and we are pleased to be working with quality companies like CITIC Hong Kong and Zhangjiagang Free Trade Zone Economic Development Company," said Graydon H. Laughbaum, Jr., Unocal vice president for New Ventures, East Asia and Latin America.

Laughbaum added that China has a rapidly growing home and industrial demand for LPG, and the Unocal joint venture project will help to meet that demand.

The LPG terminal will be located on the Yangtze River and will have an initial planned annual throughput capacity of 500,000 metric tons. The LPG will be delivered to the terminal by refrigerated tanker ships. The LPG will be stored in refrigerated form at the terminal and delivered to customers as a pressured product.

The joint venture will sell the LPG in bulk, utilizing both truck loading and barge loading facilities. This will allow access to customers along the Yangtze River, Jiangsu and adjacent provinces, Laughbaum said.

It is anticipated that the terminal construction will be completed by December 1997 with LPG available for delivery to customers in January 1998.

Updated: September 1996