China approves Daqing ethylene capacity expansion

Chinas National Development and Reform Commission said it has approved the expansion of an ethylene project owned by Daqing Petroleum & Chemical Co, a unit of PetroChina Co. Ltd. The project in northeast China’s Heilongjiang province, which is part of the company’s petrochemical development plan aimed at offsetting the effects on the local economy of declining crude oil output, will double its capacity to 1.2 million tons per year. Output at Daqing field, which accounted for about a third of Chinas oil production five years ago, has declined steadily in recent years. The company did not confirm when the expansion would be completed. Amount of the investment was also not disclosed. (June 7, 2007)