PetroChina, Saudi Aramco sign MoU on Yunnan refinery

21 March 2011 05:03  [Source: ICIS news]

GUANGZHOU (ICIS)--Chinese oil major PetroChina has signed a memorandum of understanding (MoU) with Saudi Aramco’s subsidiary, Aramco Overseas Co, to develop a proposed 200,000 bbl/day refinery in China’s Yunnan province, PetroChina announced on Monday.

The MoU was signed last Thursday together with a supplementary agreement on crude supply, under which Saudi Aramco would deliver 10m tonnes of crude to PetroChina in 2011, the PetroChina statement said.

The project would get all its crude supply from Saudi Aramco and capitalise on PetroChina’s sales network in targeted markets, according to the statement.

The proposed refinery will be designed to process 200,000 bbl/day of Arabian crude oil and will produce high-quality refined products, such as ultra low-sulfur gasoline and diesel that meet current and future China product specifications.

PetroChina added that the refinery project would support the development of its 22m tonne/year China-Myanmar crude pipeline that is currently under construction.

Other details such as the size of the investment, the timeline and downstream facilities of the project were not disclosed. Company sources did not reply by the time of publication when contacted by ICIS.

PetroChina has been planning to build a 10m tonne/year refinery and a 1m tonne/year cracker in Yunnan since 2009, according to previous ICIS reports.

Additional reporting by Judith Wang

For more on PetroChina and Saudi Aramco, visit ICIS company intelligence

By: Fanny Zhang
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