CNPC Signs Financing Agreements for Refinery in Chad

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Researched by Industrial Info Resources (Sugar Land, Texas)--China National Petroleum Corporation (CNPC) (Beijing) signed financing documents and agreements with the government of Chad for a joint venture refinery in Chad. The signing ceremony occurred in Beijing on August 21.

Mahamat Hassan Nasser, Chad's Minister of Mines, Energy and Oil, and Jiang Jiemin, General Manager of CNPC, signed the agreements for the N'Djamena Refinery on behalf of their countries. Representatives from both parties also signed the supplemental agreement and the loan agreement for the joint venture refinery.

The refinery, located 40 kilometers north of N'Djamena, the capital of Chad, has a total planned annual crude oil processing capacity of 50,000 barrels per day (BBL/d). Phase I construction will create a capacity of 20,000 BBL/d, which will provide an annual production capacity of about 250 million gallons of gasoline and diesel, 6 million gallons of kerosene, 60,000 tons of liquefied petroleum gas, 25,000 tons of polypropylene and 12 million gallons of fuel oil. The project also consists of a 40-megawatt (MW) power plant. In addition to meeting the facility's demand, the power plant will also supply about 20 MW of power to the city of N'Djamena.

The project is the largest joint venture in Chad and will be jointly funded by China National Oil and Gas Exploration and Development Corporation (CNODC) (Beijing), a subsidiary of CNPC, and the Société des Hydrocarbures du Tchad (SHT), Chad's state oil company. CNPC holds a 60% stake in the joint venture, and SHT holds the remaining 40%. The cooperation term of the project is 99 years. Phase I of the project will begin operations in 2011.

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