September 24, 2008 at 4:31 pm #3417
Sinopec ties up with Henan for oil, gas businesses
Reuters – Thursday, September 25
BEIJING, Sept 24, 2008 – China’s Sinopec Group, parent of Sinopec Corp , signed a framework deal on oil and gas cooperation with central China’s Henan province, domestic media said on Wednesday.
The two parties agreed to further expand Sinopec Corp’s Luoyang refinery in the coming three to five years while considering advancing a methanol-to-olefins plan in Sinopec’s Zhongyuan Petrochemical Company, the Henan Daily, a newspaper run by local government, reported.
Luoyang has planned to invest about $500 million to add a 450,000-tonne-per-year paraxylene facility in the next three years while boosting refining capacity to 200,000 barrels per day from the present 120,000 bpd by 2011, its president told Reuters in an interview in March.
Henan would cooperate with Sinopec to expand the latter’s distribution network of refined oil products in the province, and Sinopec would increase natural gas supply to the most populous province via a planned pipeline.
The report did not specify likely investment involved in these projects.
At the end of 2007, rival CNPC, parent of PetroChina, also signed a similar cooperation deal with Henan, aiming to gain support from local government for its gas and oil business expansion. (Reporting by Beijing newsroom; Editing by Clarence Fernandez)
September 24, 2008 at 4:33 pm #6552
Here is update on an additional expansion of 200 MBD at Sinopec’s Luoyang refinery in the next 3-5 years (targeted for 2011) using Henana oil from Chna’s Henan province.
I announced earlier that Sinopec Luoyang had just brought online a new delayed coking unit ~ 1.4 million tpy (coker charge) on June 27, 2008 (several months earlier than target 2009 completion). No news (not unusual) if coker will be expanded yet.
The article also mentions a similar Henan deal with competitor PetroChina. But this refinery should NOT be confused with the PetroChina’s Liaoyang Refinery that just completed an expansion to process more (~+70MBD) Venezuelan crude (originally build 2006 to handle Russian crude imports to replace declining Daqing & Liaeho crude fields). I am still trying to confirm whether this upgrade required an expansion to existing Lioayang fuel coker.
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