Completion of new plant constructions and capacity expansions in China’s refineries in 2008

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Status of new plant constructions and capacity expansions in China’s refineries in 2008: In 2007, there were not many new plant constructions or capacity expansions in China’s refineries. Only Sinopec’s Yanshan Refinery added 8 million tons of crude oil processing capacity in June (a net increase of 5.5 million tons), while Wuhan Refinery was set to add around 3 million tons of processing capacity by the end of the year. Apart from these, no other large-scale new refining capacities came online. In 2008, the three major oil companies—CNPC, Sinopec, and CNOOC—had 7 new or expanded refinery projects that were completed, as shown in the table below. It is estimated that the additional crude oil processing capacity will be around 54.5 million tons, representing approximately 14.7% of China’s total crude oil processing capacity at the end of 2007. Of this amount, 22.5 million tons will result from expanding existing refineries, while another 32.5 million tons will come from newly built refineries. Looking at the distribution of new oil refining areas since 2008, aside from Fushun Petrochemical and Dushanbe Petrochemical, they are all located in the coastal regions of East and South China, which are also the areas with the highest oil consumption in China. Completion Status of New Construction and Capacity Expansion of Refineries in 2008, Unit: 10,000 tons ---------------------------------------------------------------------- Company Refinery Original Capacity Additional Capacity Completion Date Location ---------------------------------------------------------------------- Sinopec Jiujiang Petrochemical 500 250 March 2008 Jiujiang, Jiangxi Qingdao Petrochemical 0 1000 March 2008 Qingdao, Shandong Fujian United Petrochemical* 400 800 End of 2008 Quanzhou, Fujian CNPC Dushanzi Petrochemical* 600 400 August 2008 Dushanzi, Xinjiang Fushun Petrochemical* 1100 800 Third quarter of 2008 Fushun, Liaoning Qinzhou Petrochemical 0 1000 End of 2008 Qinzhou, Guangxi CNOOC Huizhou Refinery 0 1200 End of 2008 Huizhou, Guangdong Total 5450 ---------------------------------------------------------------------- Note: *Refineries with accompanying ethylene projects