Petrochem Firm Plans 5 Million-Ton Expansion in Inner Mongolia

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Researched by Industrial Info Resources (Sugar Land, Texas)--Rapid economic development in the Inner Mongolia Autonomous Region in recent years has further increased need for refined oil in the area. To meet demand, the Huhehaote Petrochemical Company is working to expand its refining capacity in the region by 5 million tons per annum. In December 2007, the project's feasibility was studied in Beijing.

The feasibility-study committee said the expansion is vital for the company's development. The panel also said that the expansion is needed for the economic development of the region and to meet demand in the region.

Huhehaote Petrochemical began production in 1990. It is the only oil-refining enterprise in Inner Mongolia. It started as Huhehaote Oil Refinery and later became a part of China National Petroleum Corporation (Beijing.) It was one of the key projects in the eighth five-year plan (1991-95). The company's current oil-refining capacity is 1.5 million tons per year. It mainly processes crude oil from the Erlianhaote and Changqing oil fields. It has 12 sets of petrochemical production equipment, including atmospheric vacuum distillation and catalytic cracking units. It is a fuel-based petrochemical enterprise. Its main targeted sales destinations are Inner Mongolia, northern Shanxi and Hebei provinces and also exports to People's Republic of Mongolia.

In 2006, Huhehaote Petrochemical processed 1.3 million tons of crude oil and achieved $692 million in revenue.

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