China ZhenHua Oil’s First Oil Refinery Started Construction

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Researched by Industrial Info Resources (Sugar Land, Texas). Management at China ZhenHua Oil Company, Limited (Zhenhuaoil, Beijing, China) noted recently that its parent company has started construction of its first oil refinery in Northeast China.

This oil refinery is part of Zhenhua Oil’s plan to expand its business from trade and oil upstream business to include downstream businesses. This plan has gained support from its parent company, the state-owned military/defense equipment provider China North Industries Corporation (NORINCO) (Beijing, China).

The planned refinery is located in Liaoning Province, and will mainly produce diesel and ethylene raw material. The designed production capacity of the refinery’s first phase is 80,330 barrels per day. By the end of 2010, the refinery’s production capacity will be expanded to 160,660 barrels per day.

It is also reported that, upon the refinery’s completion in 2009, it will import at least 80,330 barrels of crude Ural oil from Russia everyday as raw material.

Zhenhua Oil is one of the six enterprises approved to engage in overseas oil development. It has the qualification to import crude oil and fuel oil. It is also an industry member on the bilateral energy councils of China – Kazakhstan, China – Venezuela, and China – Kuwait.

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