China's Zhuhai Zhenrong plans to build new refinery in Myanmar

13 January 2012 09:45  [Source: ICIS news]

GUANGZHOU (ICIS)--China’s oil and petroleum products trader Zhuhai Zhenrong is planning to build a 100,000 bbl/day refinery in Myanmar, a source familiar with the project said on Friday.

The project is expected to cost around $2.5bn (€1.95bn) and is most likely to be built in the southern port city of Dawei, where a new industrial estate is being built, the source said.

The refinery is expected to come on stream in 2015-2016, according to the source.

Zhuhai Zhenrong will benefit from tax breaks as well as favourable land use and exchange rate policies if the firm chooses to build the new refinery at Dawei, according to the source.

The firm will partner with two Myanmar-based firms - a government-linked firm and a private company - to build the new refinery in Dawei, the source said.

Myanmar currently has three refineries with a combined capacity of around 46,000 bbl/day, according to the source.

The $50bn Dawei Special Industrial Zone will include a deepwater port, an oil refinery and petrochemical units, according to media reports.

Additional reporting by Nurluqman Suratman

($1 = €0.78)

By: Fanny Zhang
+65 6780 4359

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