* 240,000-bpd plant in Quanzhou, aims completion 2012
* Eyes joint investment by Kuwait, French Total
* Sinochem, Kuwait in deal for crude supply
(Adds details, Kuwait's Guangdong plant)
By Chen Aizhu
BEIJING, Aug 13 (Reuters) - Chinese state oil trader Sinochem is quietly building its first wholly-owned major refinery in southern China, and is eyeing strategic partnerships with Kuwait's state oil firm and French major Total, industry officials told Reuters.
Sinochem aims to complete the 240,000 barrels per day plant in Quanzhou city, Fujian province in 2012. It is set to be China's next major greenfield refinery as the world's No.2 oil consumer adds refining capacity to fuel strong economic growth.
"The project is going smoothly," one official familiar with the plant's construction said on Thursday.
The refinery, estimated to cost close to $4 billion by a second industry executive, is awaiting Beijing's final approval after securing a preliminary go-ahead from the top energy agency, the National Energy Administration.
Sinochem hopes to partner OPEC member Kuwait, which in late 2007 agreed to supply 240,000 bpd of crude to the Sinochem plant now designed to treat Kuwaiti oil.
Sinochem also wants its long-time partner, French oil major Total, in the project, sources said.
Sinochem expects to hold a 51 percent stake in the project, while the other two parties would evenly split the remaining 49 percent.
A Total spokesperson declined to comment on her firm's participation.
TWEAK IN PLANT SIZE
Worried that the project may not get approval from Beijing, Sinochem said in 2007 it wanted a 100,000-bpd plant to process fuel oil, which only needs clearance from local government.
"That hurdle -- the worry that the bigger buys will block it -- is gone now," said a Sinochem executive who declined to be named.
Sinochem, until 1993 China's monopoly oil trader, wants to establish itself into a solid No.4 oil firm in China, after PetroChina, Sinopec Corp and offshore specialist CNOOC Ltd, by building up its exploration, refining and fuel marketing strength.
Its only other refinery holding is the 200,000 bpd WEPEC plant in northeast China, a joint venture with Total and PetroChina. But the plant is virtually controlled by PetroChina.
Sinochem already runs a separate fuel marketing firm, also in tie-ups with Total, to set up petrol stations in China.
An alliance with Kuwait, if finalised, would mean the Middle Eastern exporter likely committing crude supplies totalling 540,000-bpd to China, after the OPEC member announced on Monday it had picked a new site for its planned $9 billion venture in Guangdong, following Beijing's order to relocate under environmental pressure.