The project also reflects an overall strategic logic that is pulling China closer to the oil and gas-rich Middle East, said He Jun, an analyst with Anbound Consulting, an energy consulting company based in Beijing.

"Middle Eastern oil capital is looking for new cooperative partners and whereas in the past they paid insufficient attention to China, now they are keen to be part of the growth momentum here," he said.

"At the same time, China is pursuing a policy of diversification in its overseas energy strategy, hoping to engage in cooperation with Russia, with the Middle East and with Africa."

The Sino-Kuwaiti project also appears to have all the attractions that China usually looks for when approving joint ventures -- money, technology and jobs.

Once the huge facility becomes operational four years from now, it could create employment for between 800 and 1,000 Chinese, previous reports said.