China approves new Guongdong refinery project

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Mar. 2 -- China's National Development and Reform Commission has approved China National Petroleum Corp.'s plans to construct a 10-million-tonne/year refinery at Jieyang in southern Guangdong province.

The approval is the latest effort by the government to boost China's refining capacity in the wake of severe shortages over the past several years throughout the country, but especially in its southern regions.

"The refinery will help CNPC better tap the rising demand for petrochemical products in the Pearl River Delta region," said Cai Enming, an executive with China Petroleum and Chemical Association.

Although China's other two main oil companies, Sinopec and CNOOC, already have refineries in Guangdong, the facility marks a new departure for CNPC as most of its existing refineries are located in China's northeastern and northwestern regions.

Cai underlined the need for CNPC to operate a refinery closer to the market it serves, saying that, "The cost would be too high for CNPC to transport its products from these [northern] refineries to Guangdong."

Chinese media reported that the project would likely refine heavy oil imported from Venezuela.

The reports follow an announcement by CNPC on Feb. 13 that it has started a new research program that aims to lighten heavy crude oil, enabling it to build several refineries able to process such Venezuelan oil (OGJ Online, Feb. 20, 2009).

The announcement of the new refinery coincided with reports that the NDRC has revealed plans to increase the capacity of refineries in nine cities across the nation, mostly those owned by Sinopec Corp.:

-- The capacity of the 400,000 b/d Zhenhai refinery in Ningbo will be increased to 460,000 b/d by September of this year and eventually to 600,000 b/d.

-- In Shanghai, the combined capacity of the 280,000 b/d Jinshan and the 220,000 b/d Gaoqiao refineries will be boosted by 100,000 b/d to 600,000 b/d.

-- In Nanjin, the combined capacity of the 260,000 b/d Jinling refinery and the 160,000 b/d Yanzi refinery will be boosted to levels similar to those in Ningbo or Shanghai.

-- The cities of Maoming, Guangzhou, Huizhou, Quanzhou, and Tianjin will each see refinery capacity boosted to 400,000 b/d.

-- Construction on a refinery is scheduled in Caofeidian.

Meanwhile, CNOOC—after a 6-month delay for unspecified reasons—is set to commission its 240,000 b/d refinery at Huizhou, in Guangdong province, to operate on a trial basis when it goes online in March.

Earlier this month, the QingLanShan crude oil terminal at the Fujian refinery received its first supplies of Saudi crude oil—a 900,000-bbl load of Arabian Extra Light carried from Ras Tanura by the tanker Cosbright Lake.

The QingLanShan terminal is the oil receiving port of Fujian Refining & Petrochemical Co. Ltd. (Frep) joint venture, which is developing an integrated refining and petrochemical manufacturing complex.

The undertaking is being developed by a consortium of Fujian Petrochemical Co. Ltd., Saudi Aramco Sino Co. Ltd., and ExxonMobil China Petroleum & Petrochemical Co. Ltd., which was established Mar. 31, 2007.

The project, which includes a 240,000-b/d refinery and will produce 2.2 million tonnes of petrochemicals a year, is in its final stage of construction. The Frep expansion is due on stream during the first half of this year.

"With the inauguration of this deepwater terminal, Frep-JV is demonstrating its readiness to help meet China's domestic oil demand as well as future demand," said Ibrahim Q. Al-Buainain, director of Asia Joint Ventures, on behalf of Saudi Aramco.

"The arrival of the Arabian crude oil to this terminal signifies Saudi Aramco's supply commitment as a shareholder, and I would like to assure you that a stream of Saudi Arabian crude is now making its steady flow to Fujian Province and that it will continue for many generations," said Al-Buainain.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

SIBUR plans MTBE expansion at Togliattikauchuk

07/01/2015 Russian conglomerate OAO SIBUR Holding, Moscow, has started preparatory work for a project designed to expand production capacity for methyl tertia...

OxyChem-Mexichem JV lets contract for ethylene storage

06/30/2015 Ingleside Ethylene LLC, a 50-50 joint venture of Occidental Chemical Corp. (OxyChem) and Mexichem SAB de CV (Mexichem), has let a contract to CB&am...

RIL’s Jamnagar refinery due maintenance

06/29/2015 Reliance Industries Ltd. (RIL), Mumbai, is planning to shut down a crude unit for scheduled maintenance at its 1.24 million-b/d Jamnagar refining a...

OGJ Newsletter

06/29/2015

BP: US surpassing Saudis in oil output among world's 'tectonic' energy shifts in 2014

06/29/2015 An eventful 2014 in the world oil and gas markets was headlined by the US overtaking Saudi Arabia as the world's biggest oil producer and surpassin...

Gazprom Neft lets contract for Moscow refinery

06/29/2015 Russia's JSC Gazprom Neft has let a contract to Tecnimont SPA, a subsidiary of Maire Tecnimont SPA, Milan, for engineering, procurement, and constr...

Marathon commissions unit at Kentucky refinery

06/29/2015 Marathon Petroleum Corp. (MPC) has commissioned a 35,000-b/d condensate splitting unit at its 242,000-b/d Catlettsburg, Ky., refinery to boost the ...

Petronas lets contract for RAPID complex

06/26/2015 Malaysia’s state-run Petronas, through a contractor, has let a contract to Industrial Cooling Solutions Inc. (ICS), Lakewood, Colo., to build a 28-...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected