CNOOC will commence production at Huizhou Refinery

China National Offshore Oil Corp. (CNOOC) has started operations at the first phase of Huizhou Refinery in Guangdong province. This project, with a total investment of RMB20 billion (US$2.92 billion) is designed to process 12 million tons of crude oil per year. Upon full operation, it will annually produce 7.3 million tons of high-quality gasoline, kerosene and diesel and 1.5 million tons of ethylene cracking feed stock, as well as 800,000 tons of paraxylene, and will contribute sales revenue of RMB34 billion (US$4.98 billion) per year to CNOOC. Next to Huizhou Refinery is the 800,000 tons per annum (tpa) CNOOC-Shell ethylene project which started operation in 2006, which, upon its commissioning, can easily get cracking feed stock from Huizhou Refinery. CNOOC plans to commence construction of the RMB45 billion (US$6.59 billion) second phase in 2009, which will be completed in 2011, expanding Huizhou Refinery’s capacity to 22 million tons per annum (tpa) and adding another one million-ethylene capacity. CNOOC also plans to construct the third phase in 2013 with an investment of RMB50 billion, to further expand the 22 million tons per annum (tpa) oil process capacity to 40 million tpa and add a new one million tons per annum tpa ethylene facility, which is scheduled to start up in 2016. (March 26, 2009)