CNPC may build refinery in Hebei

China National Petroleum Corp. (CNPC), parent firm of PetroChina, says it may consider building a refinery in north China’s Hebei province to process the crude from its newly found Nanpu oilfield in Bohai Bay. Company officials say the company will plan the use of Nanpu oil in accordance with “state needs”. If the refinery materializes, the refinery will compete with a similar one to be built by rival Sinopec in Hebei Province, in Caofeidian, which will mainly feed on imported crude oil from the Middle East. The refinery will also accelerate the two companies competition in the north China region, where Sinopec is planning new refineries in Qingdao, Tianjin and Hebei, to reinforce its dominance. CNPC will start to develop the Nanpu oilfield as soon as possible. First-phase development is planned to produce a yearly output of 10 million tons, which will rise to 25 million tons afterwards. (May 8, 2007)