C1 Energy (Shanghai) – Aug 25, 2010 －－－PetroChina would lay a foundation for a 10-mil-mt/yr oil refining project in Kunming City in Southwest China's Yunnan Province this September, expected to be complete in three years, according to an official with the local government.
The project has recently got green light from the National Development & Reform Commission, the official told C1.
Personnel with refineries subsidiary to PetroChina have been sent to Anning, a county-level city under Kunming, in charge of construction of the project, the official said.
When coming on stream, the Yuan 23-bil project is capable of producing 1-mil mt of ethylene and 10-bil cu m of natural gas per year.
As C1 reported earlier, to match 10-mil-mt/yr Yunnan oil refining project, PetroChina would start to construct three oil product pipelines in Yunnan in 2011, including Anning-Kunming-Qujing pipeline, Anning-Chuxiong-Dali-Baoshan pipeline and Anning-Yuxi-Mengzi-Wenshan pipeline, with completion due 2014.
C1's record showed that PetroChina's parent company China National Petroleum Corporation and the Myanmar government signed a memorandum of understanding in June 2009, agreeing that CNPC would be responsible for the design, construction, and operation of the China-Myanmar Crude Pipeline. CNPC-controlled Southeast Crude Oil Pipeline Company held exclusive rights of the pipeline. The 771-kilometer pipeline, extending from Maday island in western Myanmar to Yunnan's Ruili, is expected to carry 22- mil mt of crude annually. CNPC has started construction of a jetty in Maday island since October 2009.
