CNOOC Plans To Start Up New Refinery by End of March

The news was announced by the company's Chairman Fu Chengyu Thursday on the sidelines of the annual session of the National People's Congress.

With a total investment of $2.82 billion, the first phase of the refinery will have an annual refining capacity of 12 million tons per year.

CNOOC's practice in refining will no doubt strengthen competition in fuel sales, which are dominated by two bigger rivals, PetroChina Co and China Petroleum & Chemical Corp, analysts said earlier.

China implemented a new fuel-pricing mechanism in December 2008 to ensure refining profits.

The low crude prices in the international market did not hamper the company's enthusiasm in investing in renewable energy, Fu said. "Instead, CNOOC will invest more in research and development," he said.

CNOOC built China's first offshore wind power station in Liaodong Bay in the northeast Bohai Sea in 2007.

Source: China Daily

Author: Ksenia Kochneva