Shell Global Solution wins tender for feasibility study on oil refinery in China MOSCOW. Apr 1, 2008 (Interfax) – Shell Global Solution has won a tender
to carry out a feasibility study for the oil refinery building project
in China as part of the joint venture set up by Russia’s Rosneft and
China’s PetroChina (a CNPC unit), a source in the Russian company told
the Oil News Agency.
Total investment into the factory with an annual capacity of 10
million tons is estimated at $3-4 billion, he said.
In late October 2007 PetroChina (51%) and Rosneft (49%) set up a
joint venture, the Russian-Chinese Eastern Petrochemical Company, which
is based in China. Apart from the refinery the joint venture is expected
to own around 300 gas stations in China. The oil refinery will be built
in the Lingang industrial zone in northern part of the centrally
administered town of Tianjin that was announced by the government as the
national base for developing China’s oil industry. The oil refinery
could be commissioned in 2011. The factory will manufacture high-quality fuels compliant with
international standards, such as gasoline and diesel under Euro-4
Standard, to satisfy the fuel needs for the northern Chinese provinces
which are expected to experience its substantial deficit. According to
the forecast, by 2020 the deficit in petroleum products in this region
will be 20.76 million tons.