PetroChina to Build Largest Refined Products Terminal in South China

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Researched by Industrial Info Resources (Sugar Land, Texas)--The signing ceremony of the strategic cooperation framework agreement between PetroChina International Company Limited, a wholly owned subsidiary of PetroChina Company Limited (NYSE:PTR) (Beijing), and the Administration Commission of Guangzhou Nansha Development Zone was held in Guangzhou, the capital city of southern China's Guangdong province, on June 22, 2009.

According to the agreement, PetroChina will build a refined products terminal with a total storage capacity of 765,000 cubic meters together with a 600,000-barrel refined-products port at Xiaohu Island in the Nansha district of Guangzhou City. The facility will be capable of turning over 3.75 million barrels of refined oil products every month. This will be the largest and most important refined-products depot ever built by PetroChina in southern China. Construction preparation of the project will begin shortly, and the construction is expected to officially begin by the end of this year. Currently, the fastest time that such a port has been built in China is 13 months. Together with the terminal, the total construction period will be about two years.

In addition to this project, Guangdong Branch Company of China Petroleum Transportation Corporation (Beijing), together with Guangzhou Nanye Storage Company Limited (Guangzhou, Guangdong) will jointly invest $51 million to build a petrochemical logistics distribution center at Xiaohu Island. Guangdong Branch Company of China Marine Bunker (Petro China) Company Limited (Beijing) and Guangzhou Hongye Group Company Limited (Guangzhou) also reached an initial agreement regarding the setup of a joint venture to provide oil supply services for international boats with PetroChina's oil depot in Nansha as its base. The annual business turnover of these auxiliary projects is expected to surpass $490 million.

PetroChina International is engaged in the import, export and transit trade of crude oil, refined products, petrochemicals and natural gas, as well as projects involving energy conservation, emission reduction, construction and management of storage facilities, service stations, and transportation facilities both in China and abroad. PetroChina International is currently managed with a unified administration together with China National United Oil Corporation (Beijing), a petroleum trading company jointly established by China National Petroleum Corporation (Beijing), the holding company of PetroChina, and Sinochem Corporation (Beijing).

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