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CNOOC refinery to start operation later this month

By Tan Yingzi and Si Tingting (chinadaily.com.cn)
Updated: 2009-03-05 14:23

China National Offshore Oil Corporation (CNOOC), the country's biggest offshore petroleum explorer, will begin operating its first refinery in Huizhou in South China's Guangdong province later this month, said company Chairman Fu Chengyu Thursday on the sidelines of the annual session of the National People's Congress.

With a total investment of 19.3 billion yuan ($2.82 billion), the first phase of the refinery will have an annual refining capacity of 12 million tons per year.

CNOOC's practice in refining will no doubt strengthen competition in fuel sales, which are dominated by two bigger rivals, PetroChina Co and China Petroleum & Chemical Corp, analysts said earlier.

CNOOC refinery to start operation later this month

China implemented a new fuel-pricing mechanism in December 2008 to ensure refining profits.

The low crude prices in the international market did not hamper the company's enthusiasm in investing in renewable energy, Fu said. "Instead, CNOOC will invest more in research and development," he said.

CNOOC built China's first offshore wind power station in Liaodong Bay in the northeast Bohai Sea in 2007.
 
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