CNPC to expand lube, bitumen capacity at Karamay Petrochemical

China National Petroleum Corporation (CNPC), parent of PetroChina, plans to invest RMB8.33 billion yuan (US$1.3 billion) in expanding the oil refining capacity of its wholly owned subsidiary, Karamay Petrochemical Company, located in Xinjiang. Karamay is the largest producer of naphthenic base oil in China. Upon the completion of the expansion project, the refinery’s naphthenic base oil and bitumen output will increase by 600,000 tons each per year, China’s official news agency Xinhua News, reported. Karamay currently produces 400,000 tons per year of naphthenic base oil. The refinery, which produces fuels, in addition to lubricating base oil and bitumen, has a total processing capacty of 3.5 million tons per year. It was founded in 1959, based on the development of Karamay Oilfield, the first large oilfield in China. (November 22, 2011)