From April 17 to 18 of 2007, the kick-off meeting of IPS II Project Joint Feasibility Study Report (JFSR) was held in Nanjing. As the general institute for the JFSR, Sinopec Engineering Incorporation (SEI) presided over the meeting and delegates from BASF-YPC Company Limited (BYC), Sinopec Shanghai Engineering Company Limited (SSEC), which was JFSR plant institute, and Second Harbor Exploring Inspection and Designing Institute (SHEIDI), which was JFSR harbor institute, attended the meeting. On the meeting, the standard for compiling the JFSR was introduced by SEI and tasks were clearly divided among SEI, SSEC and SHEIDI. Later, specialists from SEI, SSEC and SHEIDI communicated and had a field inspection in the Company's site with their counterparts in BYC. SEI also discussed several general issues with BYC and reached agreements.

Sinopec and BASF had signed an over $500 million (4 billion RMB) agreement on July 10 of 2006, planning to expand the capacity of the steam cracker and invest in additional downstream plants to further strengthen synergies at the Company's Integrated Petrochemical Site. On September 14, 2006, both companies had signed an agreement on the preparation of a technical and commercial feasibility study for the planned expansion. The compiling of JFSR has officially commenced since this kick-off meeting.