China Petroleum & Chemical Corp., supplier of two-thirds of the nation's auto fuels, plans to spend about 16 billion yuan ($2.2 billion) expanding plants in central China, a company official said.
Capacity at the Changling refinery in Hunan province will be doubled to 10 million metric tons a year by 2010 at a cost of about 10 billion yuan, the official said, asking not to be named because of company rules. Sinopec, as China's largest refiner is known, will spend 6 billion yuan upgrading its Baling plant, which turns output from Changling into chemicals.
Sinopec's plan comes as China strains to meet fuel demand in an economy that expanded 11.4 percent last year. The state yesterday ordered refiners to ensure supplies after snowstorms disrupted transportation. China may use 25 percent of global chemical output by 2015, Exxon Mobil Corp. said in May.
``The project shows the company's concern about rising fuel demand in central China, where there is a lack of large-scale oil refineries,'' said Qiu Xiaofeng, an oil analyst with China Merchants Securities Co.
Expansion work at the Changling refinery may start this year, the official said. Huang Wensheng, a spokesman for Beijing-based Sinopec, declined to comment.
Sinopec increased oil processing by 6.3 percent last year to 155.58 million tons, about 3.13 million barrels a day, the company said Jan. 21. The state-controlled oil refiner supplied almost two-thirds of China's refined oil products in 2006.
Yangtze River
Sinopec may enlarge five oil refineries along the Yangtze River, Company Secretary Chen Ge said in May. The Beijing-based oil and gas producer is studying a plan to expand plants at Anqing, Changling, Baling, Jingmen and Wuhan, Chen said May 29, without giving details on the budget or capacity.
Parent China Petrochemical Corp. said in August that it signed a cooperation agreement with the provincial government of Hunan to promote energy projects. China Petrochemical will expand refining capacity and its sales network for oil products and gas in the region, the company said, without giving details.
Capacity at the Changling refinery in Hunan province will be doubled to 10 million metric tons a year by 2010 at a cost of about 10 billion yuan, the official said, asking not to be named because of company rules. Sinopec, as China's largest refiner is known, will spend 6 billion yuan upgrading its Baling plant, which turns output from Changling into chemicals.
Sinopec's plan comes as China strains to meet fuel demand in an economy that expanded 11.4 percent last year. The state yesterday ordered refiners to ensure supplies after snowstorms disrupted transportation. China may use 25 percent of global chemical output by 2015, Exxon Mobil Corp. said in May.
``The project shows the company's concern about rising fuel demand in central China, where there is a lack of large-scale oil refineries,'' said Qiu Xiaofeng, an oil analyst with China Merchants Securities Co.
Expansion work at the Changling refinery may start this year, the official said. Huang Wensheng, a spokesman for Beijing-based Sinopec, declined to comment.
Sinopec increased oil processing by 6.3 percent last year to 155.58 million tons, about 3.13 million barrels a day, the company said Jan. 21. The state-controlled oil refiner supplied almost two-thirds of China's refined oil products in 2006.
Yangtze River
Sinopec may enlarge five oil refineries along the Yangtze River, Company Secretary Chen Ge said in May. The Beijing-based oil and gas producer is studying a plan to expand plants at Anqing, Changling, Baling, Jingmen and Wuhan, Chen said May 29, without giving details on the budget or capacity.
Parent China Petrochemical Corp. said in August that it signed a cooperation agreement with the provincial government of Hunan to promote energy projects. China Petrochemical will expand refining capacity and its sales network for oil products and gas in the region, the company said, without giving details.
Hunan, where gross domestic product grew 15 percent in 2006, is the 13th-biggest economy among China's 31 provinces and major urban areas.
China plans to increase annual oil-refining capacity by 25 percent to 355 million tons by 2010 to meet rising demand for gasoline, diesel and chemicals in the world's fastest-growing major economy.
Government Order
The government ordered the nation's two biggest oil companies to boost fuel supplies to ensure the delivery of food and major raw materials as the heaviest snowstorms in decades hit parts of the country, the National Development and Reform Commission said yesterday.
China National Petroleum Corp. and China Petrochemical are heeding the government call and increasing fuel supplies, the Xinhua News Agency reported, citing people it didn't name.
China National Petroleum issued notices to the company's refineries and sales units, instructing them to increase crude processing volumes, state-run Xinhua said. China Petrochemical activated its emergency reaction plan to increase fuel supplies, Xinhua said in a separate report.
China plans to increase annual oil-refining capacity by 25 percent to 355 million tons by 2010 to meet rising demand for gasoline, diesel and chemicals in the world's fastest-growing major economy.
Government Order
The government ordered the nation's two biggest oil companies to boost fuel supplies to ensure the delivery of food and major raw materials as the heaviest snowstorms in decades hit parts of the country, the National Development and Reform Commission said yesterday.
China National Petroleum Corp. and China Petrochemical are heeding the government call and increasing fuel supplies, the Xinhua News Agency reported, citing people it didn't name.
China National Petroleum issued notices to the company's refineries and sales units, instructing them to increase crude processing volumes, state-run Xinhua said. China Petrochemical activated its emergency reaction plan to increase fuel supplies, Xinhua said in a separate report.
By Winnie Zhu
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