Rosneft, CNPC in talks to boost investment appeal of Tianjin refinery

Russia’s major oil company Rosneft and China National Petroleum Corporation (CNPC) are holding negotiations to increase the investment appeal of the project to build an oil refinery in the Chinese city of Tianjin. The refinery is expected to process 13 million tons of oil per year, including nine million tons of Russian crude. Crude will be shipped by tanker to the port terminal in Tianjin and then travel by pipeline the remaining 42 km to the refinery. The light oil products yield is expected to be more than 80% at the new plant. The target markets for the oil products are Northern China and the Central Plains region including Beijing, Tianjin, and the provinces of Hebei, Shanxi, Henan and Shandong, as well as the coast of Eastern China. The technical and economic conditions for this project are now being negotiated. A US$5 billion Investment in the project is expected. The refinery is set to be completed by 2015. (August 30, 2012)