China Trade Information

China National Petroleum Cooperation (CNPC), the parent company of the country’s largest oil refiner PetroChina<601857><857><PTR>, and Russia’s state-owned Rosneft, is to jointly establish an oil refinery with an annual capacity of 10 million tons in North China’s port city Tianjin.

The project, following the companies’ agreement in March last year to intensify their cooperation in the oil sector, will be possibly located in the Tianjin Harbor Industrial Park, about 80 square kilometers off Bohai Bay.

Bohai Bay is one of China’s most important and largest oil reserves. Chinese oil giants, such as Sinopec<600286><386><SNP>, CNOOC<883><CEO> and PetroChina, have already established their presence there. Due to its strategic geographical location, Tianjin is listed by the central government as a national base for the development of the oil industry.

Driven by the hike in oil prices, large oil refineries in China are urged to increase their output and production capacity. Sinopec has ordered subsidiaries to embark on their full capacities to refine a total of 42 million tons of crude oil in the fourth quarter of the year, and to produce an additional 200,000 tons in December.

Tags: CNOOC, CNPC, oil, PetroChina, Sinopec

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