CNPC Begins Construction of Oil Refinery in Chad

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Researched by Industrial Info Resources (Sugar Land, Texas)--Construction has begun on Chad's first oil refinery, a joint-venture project between China National Petroleum Corporation (CNPC) (Beijing) and state-oil firm Societe des Hydrocarbures du Tchad (N'Djamena, Chad). The foundation-laying ceremony was held in the capital of N'Djamena on October 26.

The refinery will supply products to Chad and help to develop the country's petrochemical industry. Products could also be exported. The refinery has been designed to process about 20,000 barrels per day (BBL/d) of crude oil to produce gasoline, diesel, kerosene and liquefied petroleum gas, said Jiang Wen, Deputy General Manager of China National Oil and Gas Exploration and Development Corporation (CNODC) (Beijing), a subsidiary of CNPC. The project also includes a 40-megawatt service power plant. The project will supply about 20 MW of power to N'Djamena. The refinery is expected to begin operation in 2011.

Chad began producing oil in 2003. The country currently has an annual crude oil production capacity of about 170,000 BBL/d but imports all its refined oil products. According to the joint venture agreement, CNPC holds a 60% stake in the project, and Societe des Hydrocarbures holds the remaining 40%. The project is CNPC's third oil-refinery investment in Africa.

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