PetroChina to invest US$4.5 bn for refinery expansion

PetroChina

China’s second largest refiner PetroChina has launched a US$4.52 billion programme to expand a subsidiary refinery in southern China into an integrated petrochemicals complex, according to Chinese state media.

PetroChina plans to add 14 petrochemical units to the Guangxi facilities. It is expected to continue to keep crude oil refining capacity ongoing. This is part of the company’s plan to expand its petrochemical production while also reducing refined fuel production.  

The programme is part of PetroChina’s plan to expand in petrochemicals and cut refined fuel production, in line with a broad industry trend to fill a supply gap of high-end petrochemicals.

The Guangxi refinery, based in Qinzhou city, has crude oil refining capacity of 200,000 barrels per day (bpd).

Under the investment, PetroChina will add facilities with total annual capacity of 2.76 million tonnes, including a 1.2 million-tonne/year ethylene unit, a 550,000 tonnes/year gasoline hydrocracking unit and a 350,000 tonnes/year aromatics unit.

After the expansion, slated for completion in 2025, the plant’s production of gasoline and diesel will drop, China Chemical News said.