China approves two major refinery projects

By OGJ editors

HOUSTON, July 28 -- China has approved the construction of two oil refineries on China's East Coast, costing more than $3 billion total, that will help the country meet an expected 10-15% increase in demand for petroleum products.

Sinopec Group will build, at a cost of $1.2 billion, a 205,500 b/d refinery at Qingdao in Shandong province, and CNOOC Group plans a $2.1 billion oil complex at Huizhou in southern Guangdong province. CNOOC's first refinery, it will have a capacity of 246,600 b/d.

Construction could begin immediately on both projects. When completed by 2007-08, the two projects would represent about 7% of the country's total refining capacity, currently put at 6.2 million b/d.

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