Qatar Petroleum International and Royal Dutch Shell have signed a framework deal with China National Petroleum Corp (CNPC) to build a joint refining and petrochemical complex in China.

The agreement is a step forward for the major project that will give Qatar Petroleum and Shell their first solid foothold in the world's second-largest fuel-consuming market after on-and-off negotiations for more than two years.

The Taizhou refining and petrochemical project, in southeastern Zhejiang province, will use imported condensate and other raw materials to produce ethylene and other petrochemicals, the Chinese oil major said in a company newspaper.

'The agreement further clarifies work scope and targets for each side, reflecting sincere intentions to co-operate,' it said.

Qatar Oil Minister Abdullah al-Attiyah and Wang Yong, head of the state-owned Assets Supervision and Administration Commission (SASAC), which is both a regulator and shareholder in most of China's big state-owned companies, vowed in January to strengthen co-operation in the oil and gas industries and talked about the joint venture project in China.

The project was expected to include a 400,000-barrel-per-day oil refining facility, 1.2 million tonnes-per-year ethylene cracking unit and a crude oil berth able to dock very large crude carriers, according to earlier Chinese media reports.

In May last year, CNPC and Qatar Petroleum signed a 30-year deal for gas exploration and production in Qatar, holder of the world's third-largest gas reserves. Shell, as operator, will hold a 75 per cent equity stake, with CNPC holding the remainder.-Reuters