10 Million T/A Refining and Chemical Integrated Project Starts Construction in Xinjiang

A 10.0 million t/a refining and 1.0 million t/a ethylene production project of CNPC, the largest refining and chemical integrated project in China, started construction in Dushanzi, Xinjiang on Aug. 22.     It is a major part of the energy cooperation strategy between China and Kazakhstan and also a demonstrative project in the implementation of the west development strategy in China. The start of the project can greatly help accelerate the implementation of the west development strategy, ensure the energy safety and promote the sustained, rapid, sound and coordinated development of the national economy.    The project includes 20 refining units and 12 chemical production units. The investment is estimated to be RMB26.2 billion. Refining units will be completed by 2007 and chemical production units will be completed in 2008. After the completion of the project, the output of oil products will be 5.5 million tons, the output of chemical products will be 1.82 million tons and the sales revenue will be more than RMB30 billion a year.     Dushanzi is one of the birthplaces for the petroleum industry in China and has an oil recovery and processing history of nearly a hundred years. Dushanzi Petrochemical Company Ltd. owns a capacity of 6.0 million t/a primary crude oil processing and 220 000 t/a ethylene production scale and can produce more than 350 varieties of petrochemical products. It is the only supplier of special oils for ships and imported vessels and a production base of high-grade lubricants, clean fuels and polyolefin special materials.      The rapid development of the petroleum and chemical industry in Dushanzi has benefited from the sustained stable high output of crude oil in the Kramay Oilfield. The output of crude oil in the Kramay Oilfield reached more than 10 million tons in 2002 for the fist time in history and it became the first large oilfield in the western China with an output of over 10 million tons. The output of crude oil in the oilfield can reach 11.7 million tons in 2005.      Dushanzi is a receiving terminal of the China-Kazakhstan oil transmission pipeline. The pipeline started construction in September 2004 and will be totally completed in December 2005. The oil transmitting capacity of the pipeline is 20 million t/a.  (CCR2005 No. 16)