One mln ton ethylene project underway in China

29-Aug-05

China's efforts in developing the western part of the country became evident as the foundation stone has been laid for a 10 million ton oil refining and one million ton ethylene project, the largest oil refining and chemical integrated project of China. This project, in the Dushanzi City, northwest China's Xinjiang Ugyur, Autonomous Region, is to be built by China National Petroleum Corporation (CNPC). Dushanxi is the receiving terminal of the China-Kazakhstan oil pipeline, construction for which commenced in September 2004, estimated to be complete by December 2005, and will be capable of transmitting 20 million tons of oil annually. The Dushanzi oil refining and ethylene project is a key part of the strategic energy cooperation between China and Kazakhstan. Besides its significance in the great western development drive, it may ensure China's energy security and promote the sustained, rapid, healthy and coordinated development of the national economy. The project, includes of 20 sets of oil refining installations and 12 sets of chemical installations, is estimated to cost 26.2 billion yuan (US$3.2 billion). The oil refining part will be completed by 2007 and the chemical part, by 2008. The Dushanzi Petrochemical Company currently processes 6 million tons of crude oil and 220,000 tpa of ethylene. The rapid development of the petrochemical industry of Dushanzi is backed up by the high and stable crude output of Karamay Oilfields for years running. The crude output of Keramay Oilfield, the first 10 million ton oilfield in western China, is expected to reach 11.7 million tons this year.