PetroChina's Two Projects Breaks Ground

PetroChina Company Limited ("PetroChina" or the "Company ", SEHK:
0857; NYSE: PTR) announced on August 18th, 2006 the
groundbreaking for a new complex at Fushun Petrochemical Company
Ltd. (FPC) located in Liaoning province. The project is expected
to boost the annual refining and ethylene production capacities
of FPC to 10 million tons and one million tons respectively.
     The new complex comprises thirteen large-scale main
installations, including an 8 million t/a atmospheric vacuum
unit and an 800 000 t/a ethylene producing unit. Key refining
facilities are scheduled to complete construction and start
operation in September 2008, with remaining units being planned
to be completed and be put into service in June 2009. Chemical
facilities are expected to begin operation in June 2010. Upon
completion, FPC will have a capacity of producing six million
tons of high-end gasoline and diesel while adding 1.8 million
tons of chemicals to its product mix per year.
     Being PetroChina's prime project in its eastern business
territory, the construction of the new complex at FPC bears
strategic significance to the company’s growth, which helps
PetroChina optimize its crude oil resource allocation in
Northeastern China, improve and streamline the distribution of
its refining and petrochemical businesses.
    Besides, on August 19th, 2006 PetroChina broke ground for
its Tarim chemical fertilizer production project situated in
Korla of Bayin'guoleng League Autonomous Prefecture in the
Xinjiang Uygur Autonomous Region.
     Equipped with the state-of-the-art technology in the world
and natural gas sourced from the gas-rich Tarim Basin as raw
materials, the new plant is designed to have a capacity of 450
000 tons of synthetic ammonia and 800 000 tons of urea per year,
making itself one of the largest single-unit chemical fertilizer
making facilities in China.
    The plant comprises key facilities for producing 1 500 tons
of synthetic ammonia and 2 640 tons of melt urea a day, as well
as that for coarse grain manufacture. With its discharge of
industrial waste gas and water falling well within the
government standards, the plant has obtained approval from the
State Environmental Protection Administration of China and
passed the examination on environmental risks of chemical
projects conducted by relevant authorities in June 2006.