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In China in early 2011, Aramco Overseas Co. BV and PetroChina Co. Ltd. agreed to develop jointly a 200,000-b/d grassroots refinery in Yunnan Province in far southwestern China.
About the same time, PetroChina raised crude oil processing capacity in its Jilin refinery by a third, to 200,000 b/d. The expansion is part of PetroChina's preparation to receive Russian crude oil via the newly built China-Russian crude pipeline, reportedly to supply 300,000 b/d for 20 years.
The pipeline, connected to Russia's East Siberian Pacific Ocean pipeline (ESPO), was set to pump 60,800 b/d of crude in November and 70,600 b/d in this month to China (OGJ, Feb. 7, 2011, p. 110).
PetroChina has also upgraded its 200,000-b/d Liaoyang refinery in Liaoning Province as the main processor of Russian crude.
In May, China National Petroleum Corp. and Russian state-owned Rosneft announced plans to begin building late this year a $5 billion, 260,000-b/d crude oil refinery in Tianjin. Operations would begin in 2015. The Oriental Refinery, Xinhua Agency reported, would be able to process 13 million tonnes/year (tpy) of crude oil.
In Tianjin, China Petroleum & Chemicals Corp. (Sinopec) already operates a 10-million-tpy refinery, which has ethylene production capacity of 1 million tpy, and is building a crude oil storage depot.
In June, China's National Development and Reform Commission approved construction by PetroChina of a 400,000-b/d refinery in Taizhou, in eastern Zhejiang province.
PetroChina will be joined by Royal Dutch Shell PLC and Qatar Petroleum to invest about $12.4 billion; the refinery will include a 1.2 million tpy ethylene plant.
A unit of PetroChina will hold 51% of the venture, while Shell and Qatar Petroleum will each own 24.5%.
In June, Sinopec, Asia's top refiner, announced plans to build a new 32-million-tpy refining complex in the eastern province of Jiangsu. The proposed project, to be based in the new Xuwei area near the coastal town of Lianyungang, is to cost more than $15.45 billion.
Local media reported that Sinopec planned to build the mega-complex in two phases, with the first having a refining capacity of 12 million tpy as well as a production capacity of 1 million tpy of p-xylene. Construction of the proposed project is to start in 2013 with the plant operating by 2016.
In September, Kuwait Petroleum Corp. and Sinopec revealed plans to build a $9-billion oil refinery in Guangdong province capable of handling 300,000 b/d. The refinery will also produce 1 million tpy of ethylene, according to the Xinhua news agency. Construction could start early next year.
In Vietnam at mid-year, Reuters reported that Petrolimex, Hanoi, planned to expand into oil refining from its fuel distribution business and was seeking investors to build Vietnam's first pipeline to China. Petrolimex said it planned to invest $4.4-4.8 billion to build a 200,000-b/d refinery complex in the central province of Khanh Hoa.
The Nam Van Phong complex would produce gasoline, diesel, jet fuel, kerosine, LPG, and petrochemicals. It would be one of five new refineries planned in Vietnam. The prospectus, according to the news service, also said the firm had discussed a $212-million project with China's PetroChina Co. Ltd. to build a 140-mile pipeline to take Chinese refined products to Vietnam.
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