Singapore-listed United Envirotech Ltd. (UEL) is to build and operate an industrial wastewater treatment plant in Xinjiang, China, under an investment agreement with the management committee of Luntai Industrial Park.

UEL will invest 300 million yuan ($48 million) in the facility, which will serve the petrochemical industrial park in Luntai County, located at the start of the 4,000km West-East Gas Pipeline which transports natural gas from Xinjiang in Western China to Shanghai in Eastern China.

The treatment plant will have a total capacity of 100,000 m3/day, divided into two phases of 50,000 m3/day each. It will incorporate UEL's advanced Membrane Bioreactor (MBR) technology.

Dr. Lin Yucheng, chairman and CEO of UEL, said: "This will be our first project in the Xinjiang region and when completed, our plant will be the first petrochemical MBR in Xinjiang. We believe that our MBR technology has huge potential in the industrialization and development of the water-scarce western region of China.

"Wastewater treated using the MBR technology is fit for recycling, a big advantage compared to other technologies which will require additional treatment processes to achieve the same aim. Our excellent track record in petrochemical industrial wastewater treatment using MBR technology has given us a lead in breaking into this new region."

UEL also announced last week that it has entered into a framework agreement with oil and gas group China National Offshore Oil Corporation (CNOOC) to set up a wastewater treatment joint venture company in China.

The jointly owned business will provide services including investment, consultation, design, construction and operation of wastewater treatment, recycling and desalination facilities to meet the water treatment needs arising from CNOOC Group's existing operations and new petrochemical complex at Huizhou City in Guangdong Province.

The JV is expected to invest 1 billion yuan ($161 million) to construct a wastewater treatment facility for the new complex and to acquire and integrate existing treatment facilities.