PDVSA to build large scale refinery in Guangdong
On Mar. 12, 2009, PetroChina and Guangdong Provincial Government signed a strategic cooperation agreement, to build a large scale refinery in Huilai (惠来), Jieyang City掲陽市, Guangdong Province.
With the estimated total investment of USD 8.1 billion (RMB 55 billion), the proposed refinery project will have 20 Mt/a capacity of oil processing. The feedstock will secured by PDVSA of Venezuela. PetroChina and PDVSA will jointly build the refinery and the share of PetroChina will not be less than 51% in the proposed jv project.
The project is now in the stage of feasibility study and the proposal will be sent to NDRC this year, and it is expected to get god from NDRC in H1 2010. So, PetroChina will start construction in 2010 and complete it in 2013. According to the industrial sources, PetroChina has a long term planning to expand the 20 Mt/a to 50 Mt/a in the future, and also build a new 1 Mt/a ethylene in the same site, to make Huilai to become an important petrochemical base of PetroChina, like the Sinopec Zhenhai in Zhejiang Province.
Also in Guangdong, the 12 Mt/a new refinery of CNOOC has completed the construction, and it is expected to start trial run in the coming days.
日量万バレルｘ 58＝ 年間 万キロリットル（これは石油の量、体積をあらわす）
日量万バレル ｘ 53＝ 年間 万トン （石油の比重が0.9の場合の重量トン）
日量バレル ｘ 4.8＝ 月間 キロリットル
PetroChina, Venezuela to Build Guangdong Oil Refinery
PetroChina Co. and Venezuela will build a refinery in Guangdong province that will rival the biggest Chinese oil-processing plant by capacity as the two nations reinforce their energy ties.
PetroChina, the country's largest oil company, will "further realize" the agreements with Venezuela on the 400,000 barrel-a-day refinery when energy officials from the South American nation visit Beijing this month, Chairman Jiang Jiemin told reporters today. The capacity will match the size of China Petroleum & Chemical Corp.'s plant in Zhejiang province.
Venezuela, the world's fifth-biggest oil exporter, and China plan to boost oil production from their joint ventures in the South American nation by more than 10-fold in the next six years to 1 million barrels a day. China's oil and natural-gas shortages will persist in the "long term," PetroChina's Jiang said on Jan. 12.
China National Petroleum Corp., PetroChina's parent, signed an accord with Guangdong yesterday to construct the 55 billion- yuan ($8 billion) refinery, the Guangzhou Daily reported today. PetroChina will own more than 51 percent of the plant and Venezuela will have the rest, Jiang said in Beijing.
"We will start building the Yuedong plant as soon as we get government approval," said Jiang, who added that a proposal to construct the refinery will be submitted this year to the National Development and Reform Commission, China's top economic planner. Construction may begin next year, Guangzhou Daily said.
The refinery will source heavy crude oil "mainly from Venezuela," Jiang said.
Venezuela's oil is "at the service of China," Chavez said on Feb. 17. "All the oil China needs for the next 200 years, it's here. It's in Venezuela."
Venezuela has reached out to China and Russia in an attempt to obtain financing for projects in the South American country in exchange for oil and reduce dependence on the U.S. Petroleos de Venezuela SA, known as PDVSA, will provide 200,000 barrels a day to the Asian country to pay down a $4 billion loan from China Development Bank.
The two countries agreed in May 2008 to build a refinery in China and create a joint venture to drill for oil in the Junin 4 area, where China National has been quantifying and certifying reserves. Venezuela plans to export 1 million barrels of oil a day to China by 2011 or 2012, Chavez said then.
China, the world's second-largest energy consumer, entered into oil-for-loans accords with Venezuela, Brazil and Russia last month, tapping its $1.95 trillion foreign-exchange reserves at a time when credit is scarce.
PetroChina shares rose as much as 6.3 percent today, the most since Jan. 29, and were at HK$5.73 at the midday break. The main Hang Seng Index advanced 3.8 percent.
Updated 18 hours 46 minutes ago
CARACAS, Mar 18 - President Hugo Chavez Tuesday hailed a six-billion-dollar drilling deal with Russia in Venezuela's oil-rich Orinoco basin, and a refinery and oil-export deal with China, as Venezuela's economy struggles with cheap oil prices.
"Two days ago, we signed in Vienna an agreement we'd been working on for months ... It's quite important that Venezuela and Russia have formed an energy corporation and established a dialogue," Chavez told a cabinet meeting that was briefly televised.
The joint-venture agreement was signed by Energy Minister Rafael Ramirez with Russia, on the sidelines of Sunday's meeting of the Organization of Petroleum Exporting Countries (OPEC) in the Austrian capital.
Ramirez said here Tuesday the deal covered a "direct investment of at least 6.0 billion dollars" in the southeastern Orinoco basin that Venezuela estimates holds 53 billion barrels of crude oil.
Venezuela has agreed to a series of joint ventures with foreign oil companies in the Amazon jungle region for prospection and extraction deals in which Venezuela's state-run PDVSA holds a 60 percent stake.
Chavez also said Tuesday that Ramirez had just left for Beijing to sign "three strategic agreements" on building a refinery in China and "for Venezuela to supply China over the next few years up to one million barrels of oil per day."
China currently imports more than 300,000 bpd from Venezuela, he added.
The plan is for China to be supplied with extra-heavy crude from the Orinoco basin to be refined in the new facilities going up there. A September agreement between the two countries called for oil exports to China to reach 500,000 bpd in 2009.
With the price of crude on the world market 20 dollars below what Chavez planned for this year, Chavez said his government is ready to withstand even lower prices.
Venezuela is grappling with a precipitous decline in oil values, from an average of nearly 87 dollars a barrel in 2008 -- with a peak of 130 dollars -- to just 36 dollars a barrel today.
Some 90 percent of the country's export income comes from oil, and the country planned for 60 dollars a barrel in its 2009 budget.
On Sunday, Chavez said he was considering raising the domestic price of gasoline -- four cents a liter (16 cents a gallon) -- to raise revenues.
But on Tuesday, he boasted: "We're battling to stabilize oil prices within a fair range ... We were ready for 25 (dollars per barrel) or less. I told them, 'Lets get ready for oil at zero (dollars).'"
Venezuela tried but failed to have the 12-member OPEC lower its output at their Sunday meeting.
OPEC instead decided against further cuts and froze its output at current levels, urging its members to comply with last year's quotas.