PetroChina May Shandong, Yunnan Building Two Refineries

PetroChina Co., PTR, a management person on December 11 that the company is in Shandong, Yunnan building two refineries for a preliminary study.

Asset size measure, PetroChina is China's largest oil company.

The management said that PetroChina hope that the significant increase refining capacity, and are currently being competitors enter the China Petroleum & Chemical Corp., SNP, Shandong and Yunnan occupy the market.

He said the refinery construction plan has not yet been approved by the government. He also said that these two refineries feeding may mainly come from the Middle East and Russia from imported crude oil. He said, and Exxon Mobil Corp., XOM, and other large international oil companies, PetroChina plans to use to import materials to improve refining capacity, so that it goes far beyond the company's crude oil production capacity.

One refinery will be located in Weihai City, Shandong Province, near the city of Qingdao in China's petrochemical major refineries. He said that another proposed refinery will be located in China - Myanmar oil pipeline the end of Kunming City in Yunnan Province. The management said that the refinery, each handling capacity of at least 200800 barrels. In view of the Shandong Province independent refineries operating instability, the government decided to support the construction of new oil refineries PetroChina to ensure fuel supply.

Because of the rising price of crude oil, independent oil refineries in Shandong Province has suspended operations later this year, thus exacerbating the fuel shortage situation.

PetroChina and its parent China National Petroleum Corporation recently with Shandong, and the Yunnan provincial government signed a strategic cooperation agreement.

Source: 中华工控网 Dec. 13, 2007