Dalian Port 'confident' of plans to expand oil operations

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Aug. 25 -- The Port of Dalian, aiming to become a major gateway for China’s oil imports, plans to spend $117 million or more this year on the necessary storage and berthing infrastructure.

"We have confidence in the future of our oil business," said Dalian Port Chairman Sun Hong, while its executive director Jiang Luning said total oil storage capacity will increase by yearend to 3.25 million cu m from the current 600,000 cu m.

According to Jiang, the port will add 1.25 million cu m of storage space by yearend through a joint venture with PetroChina International Corp. and that PetroChina International Corp. will add another 1.4 million cu m on its own.

Jian said the development is required by increasing demand as the port’s oil storage capacity is insufficient for its international clients, some of whom want to lease oil storage facilities from the port.

Jian also said the port’s berthing infrastructure would be upgraded to enable the reception of 450,000-dwt ships by yearend, up from the current capacity of 300,000 dwt.

In April, the port announced that it handled 34.9 million tonnes of oil and liquefied chemicals in 2008, an increase of 1.3% over 2007. The port also said it handled 20.1 million tonnes of imported oil in 2008, an increase of 8.9% over 2007.

At the time, the port said it received government approval to use some of its 12 newly constructed oil storage tanks to store bonded oil, which “expanded its storage and trans-shipment business for crude oil and enhanced profitability.”

The port also underlined the importance of the new facilities to be constructed by and with PetroChina, saying that their operation would help it to achieve “continuous business growth” by increasing its oil throughput.

According to Roslyn Ji, in a recent report for Core Pacific-Yamaichi, oil contributed 42.2% of Dalian Port's revenue and 54.1% of its gross profit in 2008.

As a result, Ji said, "We expect oil to continue to drive the company's growth over the next few years on the back of Dalian Port's unique position as one of the strategic oil reserve bases in China."

In March, the port announced plans to set up an LNG terminal joint venture with PetroChina, focusing on a receiving terminal in the city of Xingang, Dalian, which is expected to be put into operation in 2011.

PetroChina will hold a majority stake of 75% in the joint venture, while Dalian Port will own a 20% stake, with the remaining 5% held by Dalian Construction Investment Corp., a local government investment arm.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Security takes center stage

12/15/2014

Thwarting terrorists, repelling pirates, and routing organized crime: sounds like themes of familiar, big-budget Hollywood movies.

Linn exits Anadarko basin in deal worth $1.95 billion

12/12/2014 Linn Energy LLC has agreed to sell all of its oil and gas properties and related midstream assets in the western Anadarko basin for $1.95 billion t...

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

Study improves subsea pipeline preheating

12/01/2014 A higher flow rate at lower temperatures can more effectively preheat subsea crude oil pipelines than currently used techniques. This article found...

US crude exports debate prompts a fresh look at the Jones Act

12/01/2014 The Jones Act, which requires that maritime transportation of goods between domestic ports take place on US-flagged vessels, is becoming more promi...

Legislative vote delays St. Croix refinery sale

12/01/2014 The Senate of the 30th Legislature of the US Virgin Islands has voted unanimously to send back a proposed agreement that would provide for the rest...

PAA, EPP to expand Eagle Ford pipeline, build terminal

11/04/2014 Plains All American Pipeline LP (PAA) and Enterprise Products Partners LP (EPP) are constructing a condensate gathering system into their Three Riv...

Pipeline, CNG top Cyprus gas export options

11/03/2014 Pipeline and CNG are the best options for exporting natural gas production from Cyprus to relatively close markets in terms of both initial cost an...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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