November 18, 2011 at 3:35 pm #2043
ARGUS: Sinopec-KPC refinery breaks ground in China
18 Nov 2011 10:00 GMT
Beijing, 18 November (Argus) China’s state-controlled oil firm Sinopec and Kuwait’s state-owned KPC today started construction of their joint-venture 300,000 b/d Zhanjiang refinery in southern China, Sinopec said.
The 50:50 joint venture in Guangdong province is targeted for start-up in 2015. The refinery complex includes a 1mn t/yr ethylene plant and an affiliated 300,000t crude berth at Donghai island off Zhanjiang. The refinery will be able to produce 61,000 b/d of gasoline, 120,000 b/d of diesel and 32,000 b/d of jet fuel at full operating capacity, according to its environmental assessment report. This will account for about 18pc of total oil product demand in Guangdong.
But there is no indication that KPC and Sinopec have reached agreement on marketing rights for Zhanjiang. KPC wants to take a stake in the refinery’s wholesale marketing arm in order to offset losses from products sales under China’s highly-regulated domestic oil products market. But Sinopec is resisting this. Sinopec recorded a refining loss of about $1.7bn in the third quarter, while state-controlled PetroChina lost $2.8bn. Sinopec is also unwilling to include a third investor in Zhanjiang, which KPC has been pushing for to share costs of the project.
Marketing rights have been a sticking point for foreign companies looking to invest in China. KPC has failed to reach a deal with state-controlled SinoChem to invest in the 240,000 b/d Quanzhou refinery in southern Fujian province as the Chinese firm wants to retain control of product sales from the refinery.
Saudi Aramco gained access to China’s wholesale oil products market through its 240,000 b/d Fujian refinery joint venture with Sinopec and ExxonMobil that came on stream in November 2009. But Aramco has not been able to conclude a deal with PetroChina to invest in a planned 200,000 b/d refinery in Kunming, southern Yunnan province, with product wholesale rights the major obstacle.
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November 18, 2011 at 3:37 pm #4830
Update Sinopec-KPC Zhanjiang Coking Refinery/Sinochem-KPC Quanzhou Refinery/Sinopec-Exxon-Aramco Fujian Refinery /CNPC Kunming Refinery projects.
<Also dont forget check back on the OGJ Mar 2011 China Special Report where Wu updated expansion projects for CNPC/Sinopec/CNOOC & few large Independent Refinery expansions 2012-2016 start construction. >
November 19, 2011 at 7:27 pm #4829
Kuwait, China start construction of $9.3bn refinery project
By Reuters Friday 11/18/11 10:25AM
China Petroleum & Chemical Corp (Sinopec) and Kuwait Petroleum Corp on Friday started building their joint refining and petrochemical complex in the southern Chinese province of Guangdong, the top Chinese oil refiner said.
The 59bn yuan ($9.3bn) project, including a 300,000-barrel-per-day refinery and a 1m tonne-per-year ethylene cracking unit, was expected to come on line in 2015, Sinopec said in a press release.
The National Development and Reform Commission, a powerful ministry in charge of major project approvals, gave its nod for the project in March.
KPC has said it is still looking to partner with an international oil company for some of its 50 percent stake in the project in Zhanjiang in western Guangdong.
The project will secure Kuwait, the world’s seventh-largest crude exporter, a stable outlet for its oil as it aims to more than double crude exports to China to 500,000 bpd, while giving the world’s second largest oil buyer a steady supply as demand keeps pace with solid economic growth.
In 2009, KPC briefly tapped potential investors Royal Dutch Shell Plc and Dow Chemical Co, but the companies did not commit to form a consortium.
Kuwait said in April that it was in talks with BP Plc and other major energy companies over a possible role in the refinery project.
January 24, 2012 at 5:00 pm #4741
Kuwait reaches deal with Total for China refinery: report
AEP – Tue 01/24/2012
Kuwait Petroleum Corp. has reached a deal with France’s Total to be a partner in a Kuwait-China refinery joint venture, the Kuwaiti oil minister was Tuesday quoted as saying.
Mohammad al-Baseeri said the deal was struck after Shell withdrew from talks in the $9 billion refinery and petrochemical complex, Al-Jarida newspaper reported.
KPC’s international arm, Kuwait Petroleum International (KPI) and China’s state-owned Sinpec signed an agreement more than two years ago to build the complex in southern Guangdong province.
KPI has been negotiating with international oil majors to sell 20 percent of its 50 percent stake, or 10 percent of the total project.
Baseeri said the project is expected to come on stream in 2014 or 2015, a delay from the initial startup of 2013.
The refinery is expected to process up to 300,000 barrels per day of mainly Kuwaiti crude oil when it comes online, with its capacity rising to 500,000 bpd two years later.
A petrochemical plant attached to the refinery is slated to produce one million tonnes of ethylene.
January 24, 2012 at 5:02 pm #4740
Here is update on $9 Billion 300-500MBD KPI-Sinopec JV China Guangdong Refinery/Petchem – looks like Total has replaced Shell (both Shell & Dow were courted in 2009) who withdrew from project. KPI was trying to sell 20% of its 50% in project (would be 10% of total). The startup date is still at revised target of 2015 but could hit delays. A coking unit has still not been confirmed on this project
The project location was originally (approved ~ 2006) at Nansha/Guangzhou but moved to Zhanjiang/Guangdong in May 2009 because of local environmental uproar and Shell was originally a partner but dropped out.
Kuwait (worlds 7th largest crude exporter) aims to double its current 500 MBD exports to China Petrochemical/Refineries like this one (…….Course with KPI bringing on Mega expansions at its own 3 (2 soon to be coking) refineries there will be more competition for those crude barrels in Mideast down the road).
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