China: country's state-owned CNPC setting out to work on another pipeline project.
CNPC looks at Shandong pipeline
China National Petroleum Corporation (CNPC) has teamed up with a Shandong-based outfit to build a 462-kilometre pipeline that will transport 200,000 barrels per day of oil.
The pipeline will pump crude from the port city of Rizhao on coastal Shandong to Dongming in the west near the border with Henan province, CNPC’s publication, China Petroleum Daily reported.
The 2 billion yuan ($293 million) pipeline was scheduled to be operational by June 2011 and would be expanded to 400,000 bpd in a second phase, the paper reported.
CNPC and Shandong Dongming Petrochem Group, a local refiner which would house the oil-receiving terminal, had intended to cooperate on the pipeline project as early as in 2007.
CNPC planned a 200,000-bpd Shangqiu refinery in Henan that would be fed with Middle East crude oil, a local newspaper reported in May.
Fuel output from the planned plant would be sold to parts of Henan, Shandong, Jiangsu and Anhui provinces, Jiang Jiemin, general manager of CNPC, was quoted as saying.