Russia presents draft of oil refinery joint agreement to China

Russia’s Deputy Prime Minister Arkady Dvorkovich told reporters that Russia has presented to China a draft of an inter-governmental agreement. The proposed agreement will determine the framework for the construction of a refinery in Tianjin, China. In 2010, a joint agreement between Rosneft and China National Petroleum Corporation (CNPC) called for a feasibility study for the Tianjin refinery.
The projected total investment for the joint venture Vostok Petrochemicals is US$5 billion, 49% of which will come from Rosneft and 51% from CNPC. According to plans, the refinery is expected to process 13 million tons of oil annually, 9 million tons of which will be Russian crude. Oil is to be transported by tanker to the Tianjin terminal port, and moved to the refinery through around 42 kilometers of pipeline. The refinery’s output is expected to constitute more than 80% light oil products. Targeted sales markets for the refinery’s products are China’s Northern and the Central Plain Regions, including the cities of Beijing, Tianjin, the provinces of Hebei, Shanxi, Hunan and Shandong, and the coast of East China. (December 5, 2012)