Energy

PetroChina to start Ningxia refinery by end of '11

(Agencies)
Updated: 2010-06-29 10:27

PetroChina Co, China's second-largest oil refiner, will start production at an expanded Ningxia refinery at the end of 2011, a year later than initially planned, parent China National Petroleum Corp (CNPC)?said Tuesday.

The 5 million ton-a-year refinery in northwestern China can produce 1.67 million tons of petrol and 2.29 million tons of diesel a year, CNPC said in its online newsletter. The expansion cost 7 billion yuan ($1 billion) and the upgraded refinery will produce fuels that meet China IV standards which require lower emissions, according to the statement.

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China's state refiners are increasing refining capacity to meet rising demand in the world's fastest-growing major economy. The nation may face an oversupply of oil products this year as it adds 31.5 million tons a year of refining capacity, CNPC said in its annual research report on Feb 4.

The Ningxia expansion will include a 5 million-ton crude distillation unit, a 2.6 million-ton catalytic cracking unit and a 600,000-ton reforming unit among 10 facilities to be built, CNPC said on Tuesday. PetroChina will shut its existing 1.5 million-ton plant at Ningxia once the new refinery starts. It didn't give a reason for the plant's delay.

China IV standards are similar to the Euro IV grade adopted in the European Union.