70% of investment from PetroChina and 30% from Sinopec

March7,2007 fibre2fashion.com

China : PetroChina to build oil refinery chemical plant

In order to expand fuel and chemical output in southwestern China, PetroChina Co Ltd, the largest oil company of the country, plans to build a refinery and ethylene plant at a cost of more than 50 billion yuan ($6.5 billion) in Sichuan province.

An agreement for the project will be signed by the authorities of PetroChina and Sichuan government that includes the refinery and chemical project in the provincial capital of Chengdu.

The refinery will process about 200,000 barrels of oil a day. The ethylene cracker will make 800,000 metric tons of the chemical annually.

The oil companies in China are increasing their refining and chemical production in order to meet demand in the world\'s fastest-growing major economy.

China wants to increase its oil-processing capacity by 25 percent and double the ethylene production capacity by 2010 to reduce the imports of the chemical.

PetroChina is planning to build a $2.6 billion plant in that Shaanxi Province to make ethylene, which is used to manufacture synthetic fibers. The plant will have annual output of 1 million tons of ethylene. 陝西省

The company had also started the construction of a 15.2 billion yuan refinery in Qinzhou, a city in southwestern China\'s Guangxi Province. The plant will be able to process 10 million tons of crude a year. 広西壮族（チワン族）自治区欽洲

PetroChina processed 785 million barrels of crude into fuels last year, an increase of 4.3 percent from 2005. Its ethylene production last year rose 9.5 percent to 2.07 million tons.

2007/3/7 Bloomberg

PetroChina Plans $6.5 Billion Fuel, Chemical Project

PetroChina Co., the nation\'s largest oil company, plans to build a refinery and ethylene plant at a cost of more than 50 billion yuan ($6.5 billion) in Sichuan province to expand fuel and chemical output in southwestern China.

PetroChina and Sichuan authorities will sign an agreement for the project today, provincial Communist Party Chief Secretary Du Qinglin said in an interview in Beijing. The refinery will process about 200,000 barrels a day of oil. The ethylene cracker will make 800,000 metric tons of the chemical annually, he said.

Chinese oil companies are expanding refining and chemical production to meet demand in the world\'s fastest-growing major economy. China wants to increase oil-processing capacity 25 percent and more than double ethylene production capacity by 2010 to reduce reliance on imports of the chemical.

The project is in a region of China ``that lacks a big refinery or cracker,\'\' Liu Gu, an oil analyst at Guotai Jun-an Securities HK Ltd., said by telephone from Shenzhen.

PetroChina will sign a framework agreement with the Sichuan government that includes the refinery and chemical projects in the provincial capital of Chengdu, said spokesman Cao Zhengyan.

Cao and Du wouldn\'t say when the Sichuan project would start operating. China relies on imports for half of its ethylene consumption and produced 9.41 million tons of the chemical last year, the National Development and Reform Commission said Jan. 31. China has 7.2 million tons of capacity to produce the chemical under construction, it said.

Shaanxi Province 発表
PetroChina is planning to build a $2.6 billion plant in that Shaanxi Province to make ethylene

Officials from Shaanxi today said PetroChina may build a $2.6 billion plant in that province to make ethylene, a chemical used to manufacture plastics and synthetic fibers. The plant will have annual output of 1 million tons of ethylene, Li Xiaodong, head of Shaanxi\'s development and reform commission, told reporters in Beijing, without saying when the project would be built.

PetroChina planned 2006 capital spending of more than $20 Billion. Du and Cao didn\'t give details of how the Sichuan project would be funded.

``Investment won\'t be a problem for PetroChina, which has budgeted sufficient spending for its development in both exploration and downstream refining businesses,\'\' Guotai Jun-an Securities\' Liu said.

The projects are still at the initial planning stage and ``need to be in line with the nation\'s general petrochemical projects plan and pass environment assessment, which is getting more and more strict, before getting final state approval,\'\' Liu said.

Lending Curbs

The project announcements come days after Chinese Premier Wen Jiabao said the country will do more to curb investment and lending. China will crack down on polluting factories and boost spending on farmers and low-income earners, Wen said in a March 5 address to the National People\'s Congress in Beijing.

China\'s investment in factories, roads and other fixed assets climbed 24.5 percent in 2006, the government said Jan. 26.

PetroChina\'s Sichuan project would rank among the largest investments of its kind in Asia. Reliance Petroleum Ltd., a unit of India\'s biggest company by market value, is spending $6.1 billion on building a 580,000 barrel-a-day plant next to its 660,000 barrel-a-day facility at Jamnagar in Gujarat state, making it the world\'s largest refining complex on one site.

Saudi Arabian Oil Co., Exxon Mobil Corp. and China Petroleum Chemical Corp. last month agreed to triple output at a refinery in southeast China and build new chemical plants.

Increased Refining

Production at the Fujian refinery will increase to 240,000 barrels a day from 80,000 barrels. An initial accord was signed in August 2004 and the project at the time was valued at $3.5 billion.

PetroChina said in December it started construction of a 15.2 billion yuan refinery in Qinzhou, a city in southwestern China\'s Guangxi Province. The plant will be able to process 10 million tons of crude a year.

China National Petroleum Corp., PetroChina\'s parent, said March 23 it plans to spend about 180 billion yuan during the next five years to boost refining and chemicals capacity and increase domestic sales.

PetroChina processed 785 million barrels of crude into fuels last year, an increase of 4.3 percent from 2005, the company said Jan. 15. Its ethylene production last year rose 9.5 percent to 2.07 million tons, it said.

China, which imported a record amount of oil in January, will take measures to ensure manufacturing projects meet targets to reduce energy use, the head of its top economic planning body said this week.

``We will follow an energy saving evaluation and examination system for fixed-asset investment projects and make energy efficiency a mandatory criterion\'\' for their approval, Ma Kai, head of the National Development and Reform Commission, said March 5.