Rosneft and CNPC to build refinery in Tianjin City

OAO Rosneft, Russia’s largest oil producer, and China National Petroleum Corp. (CNPC) will invest around US$5 billion in a joint oil refinery in the Chinese port city of Tianjin. Russia’s Deputy Prime Minister Igor Sechin, who is also Rosneft’s board chairman, joined Chinese Vice Premier Wang Qishan in the future refinery town of Tianjin to lay the cornerstone of the 13-million-ton per year refinery, which will be completed in two years. Under the agreement, Russia will supply 70% of the oil to the Tianjin refinery, in which CNPC has 51% interest and Rosneft 49%. The refinery’s capacity was increased from the original 200,000 barrels per day (bpd) to 260,000 bpd in light of rising petroleum demand in China, Rosneft said in a statement. (September 22, 2010)