Gasification technology of the U.S.-based GE Power Group will be used for the production of chemicals in China, according to an agreement signed between a major Chinese petrochemical company and the U.S. company.

The Qilu Petrochemical Corporation, under Sinopec, China's leading oil product supplier, will use the GE technology in its fertilizer plant, said sources with the China Petrochemical International Co., Ltd., one of Sinopec's wholly owned subsidiary, which signed the pact with GE Power Group on Wednesday.

With the GE technology, the fertilizer plant will yield 2.4 million cubic meters of synthetic gas a daily for the production of chemicals when it goes into operation in early 2008.

Qilu, in Shandong Province, east China, is the fourth Chinese petrochemical company to adopt GE gasification technology.