PetroChina to close 16 million tonnes of refining capacity by 2005

PetroChina Co. Ltd. plans to close a number of refineries with capacity totaling 16 million tonnes by 2005. Despite the closure of inefficient units, an expansion project will raise PetroChina's refining capacity to 120 million tonnes by 2005, up from 110 million now.


By an OGJ Online Correspondent

BEIJING, July 31 -- PetroChina Co. Ltd. plans to close a number of inefficient refineries with capacity totaling 16 million tonnes by 2005.

Most of these refineries are in small and use old technology. PetroChina closed six refining units last year, involving a total distillation capacity of 5.6 million tonnes.

Plans are under way to expand two PetroChina refineries by 2005.

The Dalian Petrochemical Corp. in the northeast is expected to raise its refining capacity to 20 million tonnes/year by 2005 from the current 7.1 million tonnes at the cost of 10 billion yuan ($1.2 billion), while Lanzhou Petrochemical Corp.'s refinery in the northwest will also be expanded to 10 million tonnes/year from the current 7 million tonnes.

Despite the closure of inefficient units, the expansion will raise PetroChina's refining capacity to 120 million tonnes by 2005, up from 110 million now.

China has refining capacity of 270 million tons, of which 140 million tonnes are controlled by China Petroleum & Chemical Corp.

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