Sinochem starts building refinery; eyes Kuwait, Total tie

BEIJING Aug 13 (Reuters) - Chinese state oil trader Sinochem is quietly building its first wholly-owned major refinery in southern China, and eyes a strategic partnership with Kuwait's state oil firm and French major Total (TOTF.PA), industry officials told Reuters.

The Chinese firm is building a 240,000 barrel-per-day plant in Quanzhou city in southeastern Fujian province, slated for completion in 2012, set to be the next major greenfield refinery in the world's second-largest oil consumer.

"The project is going smoothly," said one official familiar with the plant's constructions on Thursday.

The project, estimated to cost close to $4 billion by a second industry executive, is pending Beijing's final approval after securing preliminary go-ahead from the top energy agency, the National Energy Administration.

Sinochem hopes to partner with OPEC member Kuwait, which in late 2007 agreed to supply 240,000 bpd crude to the Sinochem plant, and also French oil major Total, sources said.

Sinochem expects to hold a 51 percent stake in the project, while the other two parties would evenly split the remaining 49 percent. (Reporting by Chen Aizhu, Editing by Jacqueline Wong)