Sinopec and CNPC rivalry extends to Hebei petrochemical base

The Hebei Development and Reform Commission has signed a contract with Sinopec to build a petrochemical refinery base in the Caofeidian area of Tangshan City in Hebei Province, China, putting similar plans by China National Petroleum Corp. (CNPC) in limbo. The complex will feature an oil refinery, with an annual processing capacity of 10 million tons and an ethylene unit with an annual processing capacity of 1 million tons, according to the Economic Observer. In May this year, China Business News quoted a CNPC official as saying that the company plans to build a large oil refinery base in Caofeidian, an area close to the company’s recently discovered Nanbao Oilfield. Both Sinopec and CNPC wish to incorporate crude oil reserves and import capabilities, as well as oil processing and petrochemical operations, in their bases. Hebei Province has been pushing in recent years to have Caofeidian involved in the second phase of the country’s national strategic oil reserve program. (August 21, 2007)