PetroChina's Qinzhou Refinery to Reach Full Production by End of 2009

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Researched by Industrial Info Resources (Sugar Land, Texas)--Construction of PetroChina Company Limited's (NYSE:PTR) (Beijing) 200,000-barrel-per-day (BBL/d) refinery in Qinzhou is to be completed by the end of this year, according to information released by PetroChina. Construction of the dock-storage unit is 85% complete. Construction of the refinery has picked up in order to get the whole refinery ready for full operation by the end of 2009.

Once in operation, the refinery will supply southwest China with gasoline, diesel, and petrochemical products, such as liquefied petroleum gas and polypropylene. PetroChina is also expected to import about 75 million barrels of crude and export about 6.75 million barrels of refined oil through Qinzhou dock every year, making the dock one of China's most important energy import bases and the first export base of PetroChina in south China.

PetroChina now exports refined oil from its refineries in north China, including its refineries in Dalian and Daqing. Qinzhou is closer to certain export destinations such as Indonesia, Vietnam and Singapore.

Construction of the Qinzhou refinery started in November 2007 and attracted a total investment of $2.25 billion. Qinzhou refinery is China's largest industrial project in the Guangxi province and is China's first large-scale oil refining company in the southwest.

Industry insiders reveal that since 83% of PetroChina's crude is produced by the company itself, PetroChina enjoys a natural advantage in terms of crude refining compared to China Petrochemical Corporation (Beijing), China's leading oil-refining company, whose crude supply relies heavily on imports.

PetroChina plans to build six 200,000-BBL/d refineries by 2010, with refining capacity 3.4 million BBL/d, or 40% of the national total. The company also plans to build 18 200,000-BBL/d refineries by 2020, with a refining capacity approaching 6.42 million BBL/d, or 45% of the national total.

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