Russian oil company Rosneft expects to receive a feasibility study on the construction of an oil refinery in China from Shell Global Solution in the next two months. Rosneft is planning to build the refinery jointly with China National Petroleum Corporation (CNPC).
The oil refinery will be built in the Lingang industrial zone in the northern part of the centrally administered town of Tianjin, which the government has called the national base for developing China’s oil industry. It could be operating by 2010.
In late October 2007, PetroChina (51%) and Rosneft (49%) set up a joint venture called Russian-Chinese Eastern Petrochemical Company.
Apart from the refinery, the joint venture is expected to own around 300 gas stations in China.
The oil refinery will manufacture high-quality fuels compliant with international standards, such as gasoline and diesel under Euro-4 Standard.
It is being built in the right place. According to forecasts, this region will have a petroleum product deficit of 20.76 million tonnes.
Investment in the refinery, which will have capacity to refine 10 million tonnes of oil per year, is estimated at $3 billion-$ billion.
Source: Red Orbit