Chinese to start construction of refineries in Niger, Chad

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Oct. 29 -- China National Oil & Gas Development Exploration Corp. (CNODC), as part of an earlier agreement with the government of Niger, has begun construction on a $1 billion refinery near the city of Zinder.

The 20,000 b/d facility, which will be built over 3 years, is part of an agreement signed in early June under which CNODC purchased the rights to prospect, explore, and produce petroleum in Agadem in the country's southeastern Diffa region.

Under terms of the agreement, the Chinese will invest $5 billion in exploring and developing the Agadem block, along with constructing a 2,000-km oil pipeline and building the refinery near Zinder (OGJ Online, June 6, 2008).

News of the Zinder refinery coincided with reports that China National Petroleum Corp. (CNPC) has started building a joint venture refinery in neighboring Chad.

Upon its operation in 2011, the Chad facility will be able to process 1 million tonnes/year of oil, 700,000 tpy of gasoline and diesel, and 20,000 tpy of kerosine.

The JV, in which CNPC holds 60% stake, is the first refinery project in the African country and lies 40 km from Chad's capital of N'Djamena and about 600 km southeast of the Zinder facility.

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