press release

Unocal-Sino joint venture selects contractor for China LPG terminal

El Segundo, Calif., Nov. 22, 1996 -- Unocal Corporation today announced the selection of the contractor for its joint venture liquefied petroleum gas terminal in Zhangjiagang, near the port city of Shanghai, People's Republic of China.

Sinopec Daqing PetroChemical Engineering Corporation, based in Daqing, China, has been selected as contractor for the engineering, procurement and construction of the terminal.

The new LPG terminal will be operated by Zhangjiagang Oriental Unocal Energy Company (ZOUEC). Unocal said the ZOUEC joint venture partners include its subsidiary, Unocal Yangtze Limited, 30 percent; Oriental Petroleum (Yangtze) Limited, a subsidiary of China International Trust & Investment Corporation Hong Kong (Holdings) Limited, 65 percent; and Zhangjiagang Free Trade Zone Economic Development Company, 5 percent.

"We have already begun site preparation for the terminal, and we are on a fast track to complete the terminal by December 1997," said Graydon H. Laughbaum, Jr., Unocal vice president for New Ventures - East Asia and Latin America. "This terminal will help to meet the growing demand for LPG in the East China/Yangtze River market area."

ZOUEC has secured all necessary government approvals to proceed with the project. The joint venture has opened and staffed a construction office in the Zhangjiagang Free Trade Zone.

Sales of LPG are expected to begin in January 1998, with the annual throughput from the terminal increasing to 500,000 metric tons. LPG will be delivered to the terminal by refrigerated tanker ships.

ZOUEC will sell the LPG in bulk, using both truck and barge loading facilities, to customers along the Yangtze River in Jiangsu and adjacent provinces.

Updated: November 1996