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First Flow of Saudi Crude to PetroChina's Dalian Refinery

Source: www.gulfoilandgas.com 8/27/2008, Location: Middle East

The first cargo of Saudi Arabian crude oil bound for PetroChina’s Dalian Petrochemical Company arrived at the Dalian Xingang terminal on August 26. The two-million-barrel cargo of Arabian Light was carried by the tanker Olympic Legend from Ras Tanura to Dalian, located in the northeastern Chinese province of Liaoning.

The shipment marks the first time a refinery belonging to PetroChina, one of the country’s leading petroleum enterprises, has received Arabian crude oil.

Dalian Petrochemical is the largest refinery operated by PetroChina and is that company’s first refinery to be configured with sour crude oil processing capacity, following an expansion program that doubled its capacity to 410,000 barrels per day.

The Dalian refinery is set to be a regular recipient of crude oil from Saudi Aramco, in line with a long-term supply agreement reached at the end of last year.

A team from Saudi Petroleum Ltd (SPL)-Beijing, led by regional vice president and chief representative Mohammed S. Al-Madi, was on hand to mark the closer relationship with PetroChina Dalian refinery and celebrate the initial delivery of Arabian crude oil to the Xingang terminal.

Al-Madi, who delivered his remarks to the assembled dignitaries and guests in Chinese, congratulated the refinery team on the successful startup of the facility’s new units, and noted that the first delivery further strengthened the business ties between PetroChina and Saudi Aramco.

“This shipment of crude oil from Saudi Arabia to Dalian—the first of many to come—not only underscores Saudi Aramco’s sustained commitment to the Chinese market, but also ushers in a new phase in the relationship between Saudi Aramco and PetroChina,” Al-Madi added.

The Dalian refinery commissioned its new 200,000-bpd crude oil distillation unit and several secondary units for sour crude oil processing in June 2008, including a 74,000-bpd hydro-cracking unit, a 123,000-bpd kerosene/gasoil hydrorefining unit, 51,000-bpd continuous reformer, 40,000-bpd residue desulfurization unit, 200,000 cubic meters per hour hydrogen manufacturing unit, and a 270,000 metric tons per year sulfur recovery unit.

While in Dalian, the SPL-Beijing team also met with the management of West Pacific PetroChemical Co., Ltd (WEPEC), which was the first refinery in China to process Arabian crude oil.

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