$1.6 billion to build Taizhou Refinery and Aromatics
China National Offshore Oil Corporation (CNOOC), China’s third National Oil Company (NOC), has decided to build a new integrated refinery and petrochemical complex in Taizhou, Jiangsu province, in east China.
The CNOOC Taizhou refinery and petrochemical complex will be built at the same site as the actual Taizhou CNOOC facilities where CNOOC operates plants of asphalt, or bitumen, of a similar capacity of 1.65 million tons a year.
CNOOC is planning to spend $1.6 billion capital expenditure in the project expected to generate $4.7 billion (30 billion yuan) revenues per year.
Since China restricts new capital expenditure in refineries smaller than 100,000 b/d as inefficient in a sector dominated by the larger NOCs, PetroChina and Sinopec, CNOOC had to design its project as an “integrated petrochemical project” instead of a“refinery“.
With this Taizhou project, CNOOC is expecting to become a key lubricants producer in China.
Taizhou will become a major production unit of lubricating base oil for CNOOC, with an annual output of 600,000 tons.
– Lubricating base oil
– Refined fuel oil
– Liquefied petroleum gases (LPG)
– Liquid ammonia
CNOOC is planning to complete the construction of the lube oil refinery and aromatics facilities in 2015.
For the China’s Pearl River Delta region and Yangtze River Delta region, this Taizhou integrated petrochemical project gives CNOOC the opportunity to benefit from its Market Leadership on the upstream side with its Bohai Bay resources to develop a new integrated business model on the downstream side.