CNPC Plans 10 Million Ton Refinery in Weihai

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing) plans to start constructing a 10 million-ton-per-annum (TPA) petrochemical base on Weihai City's Moye Island on the Shandong Peninsula within the 11th five-year plan (2006-10). China National Petroleum and Chemical Corporation (Sinopec) (Beijing) has also just finished a 10 million-TPA refinery in Qingdao.

Shandong's government has been planning the Moye petrochemical project for a while. In June 2007, Shandong's Gov. Han Yuqun requested during his field-investigation trip to Moye Island relevant administrations to utilize multiple market strategies to promote the progress of the project. In early December 2007, Shandong's government signed a memorandum with CNPC to establish a natural gas sales network and closer cooperation on key projects, including the Moye base.

The initial investment into the Moye project is estimated to be about $7.5 billion to $8.2 billion. It will include a 10 million-TPA oil refinery, 10 million-TPA liquefied natural gas production, a 1 million-TPA ethylene unit and a 1 million-ton oil-storage facility. Upon completion, the petrochemical project will produce various petrochemical products ranging from refined oils to synthetic materials, organic materials and fine petrochemicals.

CNPC's East China Design Institute finished the project's general design plan in March 2007. CNPC's General Manager Jiang Jiemin said the Moye Island project will help CNPC to strategically distribute its business operations on a national level.

To facilitate the project, Weihai will build a 300,000-ton oil ship dock. According to Weihai's ocean-economy development plan for the 11th five-year plan, by 2015, annual oil throughput at Weihai Port will exceed 20 million TPA.

Sinopec's Qingdao project is going smoothly as planned and is slated to start production in June 2008.

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