Chinese Oil Giants Planning Projects to Integrate Refining, Petrochemicals

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Chinese oil giants PetroChina Company Limited and China Petroleum and Chemical Corporation (Sinopec) will develop projects to further integrate the refining and petrochemical businesses. PetroChina recently announced that it has signed an agreement with southwestern China's Yunnan Province to promote the development of a refining and petrochemical base in the province. Sinopec has said that it began preliminary work, including feasibility studies and a site selection, for a similar refining and petrochemical project in Nansha in southern China's Guangdong Province.

PetroChina said preliminary research work is underway for the company's project. If approved by the national Development and Reform Commission (NDRC), PetroChina will build the 10 million-ton-per-annum (TPA) project in Yunnan.

PetroChina also will build a 1 million-TPA ethylene project in Yunnan as a raw-material supply base for further development of the company's petrochemical business there.

Preparations for oil pipelines linking China and Myanmar are going on well, analysts said. After the pipelines are finished, PetroChina will have the convenience of transporting crude oil directly to the refining and petrochemical base in Yunnan from the Indian Sea.

Sinopec said the NDRC has approved its project. According to reports, Sinopec's ethylene facility is planned to be in the million-ton level. The company is working with Guangdong Province and Kuwait National Petroleum Company (KNPC) as its partners at home and abroad.

To shorten the wait time for the project's launch, Sinopec halted construction on the 800,000-ton ethylene expansion and reformation project of its Guangzhou subsidiary in the same province.

Kuwait's Acting Oil Minister Mohammad Al-Olaim said the joint venture between Sinopec and KNPC will refine 300,000 to 350,000 barrels of oil every day. The agreement ensures that 10% of China's imports of crude oil will come from Kuwait.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.