PetroChina starts construction of two ethylene projects

China, which has been promoting the expansion of its oil refining and ethylene capacity, has started full-scale construction of two new ethylene plants, each with a capacity of 800,000 tons per year. One plant, for PetroChina Fushun Petrochemical, will be located in Fushun, Liaoning Province. The other, for PetroChina Sichuan Petrochemical, will be located in Penghzou, Sichuan Province. At the Fushun site, an 8-million-ton-per-year oil refinery is also being built with completion slated for June 2009, which will increase total refining capacity to 10 million tons per annum. The new ethylene plant, which will boost production capacity to 1 million tons per year, is expected to be completed a year later in June 2010. As for the Sichuan project, PetroChina and the Sichuan Provincial Government agreed in March to build a 10-million-ton-per-year refinery and an 800,000 ton per year ethylene plant. With the start of the construction of the two projects, China is taking a further step forward in its on-going Five-Year Plan, which is targeting the upgrading and integration of refineries and petrochemical facilities. (September 13, 2007)