Yunnan to Establish Refining Complex      

In January 2008 Yunnan Provincial Government made a final decision on establishing a refining complex in Yunnan partnering with CNPC (China National Petroleum Corporation).  
    Yunnan has no refineries today and oil products are mainly supplied by refineries in South China and Northwest China. As Yunnan is located at the terminal of the oil products supply chain, the transportation distance is long and the cost is high. In case of supply shortage, the operation and the development of related sectors would be affected.
    CNPC and Yunnan Provincial Government signed a framework agreement in December 2007. Both sides will jointly promote the construction of the refining & chemical base in Yunnan. CNPC will actively conduct early-stage survey on the refining complex. Once the project is approved, it will undertake the construction of a 10 million t/a refining project in Yunnan.
    Yunnan Provincial Government will support the construction of oil product pipeline networks and sales networks and gasohol dispatching centers in Yunnan. The oil product pipeline from Kunming, capital of Yunnan province to Dali will be constructed first. Oil product pipelines from Kunming to Mengzi, from Kunming to Puer and from Kunming to Qujing will also be constructed at an optimal time.