Government approval for expansion of petrochem complex in Xinjiang

18-Feb-05

The Chinese government has given the nod for expansion of petrochemical facility in oil-rich Xinjiang. This expansion, at an investment outlay of US$3.3 billion , which will make the complex the largest refinery and petrochemical complex in the country, upon completion in 2008. Plagued with feedstock shortages, the unit has so far not reached full capacity, stagnating at only 4 million tpa of crude annually. Crude oil processing capacity at the petrochemical facility in Dushanzi, will increase from 6 million tons to 10 million tpa. The unit will expand to produce 1.2 million tpa of ethylene products from the current 220,000 tpa. The expansion of the petrochemical facility, which will cost 3.3 billion US dollars is expected to start soon and Most of crude oil fed into the Dushanzi factory will be imported through a 1,200 kilometre cross-border pipeline, which will link Atasu in Kazakhstan to Dushanzi. Construction of the pipeline started last September. When the first phase is completed by the end of this year, the pipeline will be able to deliver 10 million tons of crude oil to Dushanzi, set to double after the completion of the second phase of development.