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CNOOC to Expand Huizhou for High Sulphur

Source: Reuters 4/15/2010, Location: Asia

CNOOC, China's third-largest oil company, has configured the facilities to be built in an expansionary project of its Huizhou refinery to process medium crude with high sulphur content, a company official was quoted as saying by state media.

Huizhou, with crude capacity of 240,000 barrels per day (bpd), is CNOOC's first major refinery and was designed to process heavy crude with low sulphur but high acid content.

CNOOC, parent of Hong Kong-listed CNOOC Ltd, plans to invest 44.2 billion yuan ($6.48 billion) to add 200,000 bpd of crude oil capacity and 1 million tonnes per year (tpy) of ethylene capacity at Huizhou by 2015.

CNOOC would add a large catalytic cracking unit in the second phase of Huizhou to produce more gasoline, complementing the first phase that focuses on diesel and aromatic products production, the China Chemical Industry News reported.

CNOOC also aimed to increase Huizhou's refining capacity to 800,000 bpd, ethylene capacity to 3 million tpy and aromatics to 2 million tpy by 2020, the report said, citing Meng Liming, chief economist of CNOOC and general manager of CNOOC's refining and sales unit.

CNOOC and Royal Dutch Shell jointly operate a 800,000-tpy ethylene complex in Huizhou, which is undergoing expansion that will raise ethylene capacity to 1 million tpy before the end of this year. ($1=6.825 Yuan)

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