CNPC Begins Laying Foundation for Niger's First Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing) held a foundation-laying ceremony on October 27 for Niger's first refinery about 50 kilometers north of Zinder city. CNPC will hold a 60% stake in the 20,000-barrel-per-day (BBL/d) refinery, and Niger will hold the remaining 40%. The refinery is part of CNPC's Agadem Integrated Oil Exploration Zone Project. Crude oil will come from the Agadem oil block. A feasibility study and site survey are currently under way. The refinery is expected to begin processing crude oil within three years.

According to the agreement signed by Niger's government and CNPC, $5 billion will be invested into the exploration of the Agadem block, Niger's largest oil-exploration zone with known reserves of 324 million barrels. CNPC has also committed to building a 2,000-kilometer pipeline in Agadem.

The cooperation between Niger and CNPC includes construction, oil-pipeline operations and the sharing upstream products. The Zinder refinery and the Agadem Integrated Project are important measures in CNPC's effort to help Niger to build its own petrochemical industry and to promote the development of petrochemical-related industries.

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