State-run Kuwait Petroleum Corp., or KPC, and China Petrochemical Corp. (SNP), or Sinopec, have moved closer to conclude an acceptable deal for implementing a $9 billion joint refinery and petrochemical project in China, state-run Kuwait News Agency, or Kuna, reports Thursday citing an executive.

The project involves the construction of a 300,000 barrels a day refinery and a 1 million-metric-ton-a-year ethylene plant in China 's Guangdong province. Kuwait will be the sole supplier of crude oil to the complex that will be located on the Donghai Island in the southern coastal city of Zhanjiang , the news agency reports.

Farouk Al Zanki, KPC's chief executive, and Sinopec Chairman Fu Chengyu also agreed to forge a strategic alliance between their two companies in order to expand cooperation beyond the planned refinery project, the news agency says.

The two have agreed to prepare plans in both the immediate and long-term and the strategic alliance agreement is scheduled to be signed during Fu's visit to Kuwait next month, Kuna reports.

"The immediate strategic plan will focus on enhancing crude oil trade volumes between the two companies and develop further the state-to-state relations, while the long-term strategic plan will call for new business opportunities between KPC and Sinopec," Zanki said according to the news agency.

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