January 8, 2009 at 12:00 pm #3253
CNOOC To Start Huizhou Refinery 2nd Phase Construction 09 Executive
01/07/09 SHANGHAI -(Dow Jones)- China National Offshore Oil Corp. will start construction of the second phase of its massive Huizhou refinery this year, despite the uncertain outlook for oil product demand, a company executive in charge of media relations said Wednesday.
Construction on the CNY45 billion ($6.58 billion) second phase, with a planned annual refining capacity of 10 million metric tons, or 200,000 barrels per day, will start this year as scheduled as part of the company’s drive to develop from an offshore oil producer into an integrated oil company, a Cnooc executive in charge of media relations said.
Completion of the second phase is now slated for 2011, said the official, who asked for anonymity.
Construction of the first phase of the Huizhou refinery, Cnooc’s first wholly- owned refining project, located in the southern province of Guangdong, was completed at the end of last year with an annual crude processing capacity of 12 million tons, or 240,000 barrels per day, he said.
The first phase is likely to come online officially before March, although the timing remains uncertain, he said. Operation of the refinery, which was originally scheduled for September last year, has been pushed back a couple of times, mainly due to equipment delivery delays resulting from severe weather last year, he said.
“First it was the snow blast at the beginning of 2008 and then heavy rainfalls in summer, which prompted equipment suppliers to delay delivery,” the official said.
Cnooc will feed the refinery’s first phase mostly with heavy oil produced from the northern Bohai field, he said. Cnooc is China’s third-largest oil company by assets, and is the parent company of the Hong Kong-listed oil producer Cnooc Ltd. (CEO).
-Jing Yang contributed to this story, Dow Jones Newswires; (8621) 6120 1200; email@example.com
January 8, 2009 at 12:17 pm #6368
Here is update on CNOOC new Grassroots Huizhou Refinery & Coker fist stage that completed 2008 but not officially online until Mar 2009 due economics/product demand. But CNOOC has already started the 2nd Stage Refinery/Coker expansion despite market conditions & expects complete by 2011.
Huizhou is just one of 24 Independent coking refineries/petrochem complex’s in the China Shandong province (not counting the 6 Sinopec & PetroChina coking refineries there) and one of the many 17-20 new refinery additions/expansions (which include 3 recent coking expansions by Sinopec & Petrochina at previous coking refineries) adding a coking unit in the 2006-2012 time frame according to my tables. Most like Huizhou seem to be going forward at this time.
No updates on CNOOC either newly acquired Haihau Refinery expansion (with coker) or newly acquired Zhong Jie Refinery 200 MBD expansion will also include a coker.
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