Sinopec (SNP.NY, 600028.SH) subsidiary Maoming Petrochemical has lodged an application with the National Development and Reform Commission to build a 12 million ton refinery, China Business News
reported. An inside source said the refinery project will cost US$585.89 million (RMB4 billion) and will likely have an annual capacity of between 16 million and 25 million tons in the long run. Maoming is also building a 2.5 million ton diesel and hydrogen plant. The refinery is currently capable of processing 13.5 million tons of crude oil and producing one million tons of ethylene a year. It posted US$11.42 billion (RMB78 billion) in revenues in 2007. The country’s top two crude oil refineries are Dalian Petrochemical (21 million tons pa) under PetroChina (600857.SH) and Zhenhai Refinery (20 million pa) under Sinopec, followed by Guangzhou Petrochemical (15.7 million tons pa), Yanshan Petrochemical (14 million tons pa) and Shanghai Petrochemical (14 million tons pa). China consumed 170.21 million tons of refined oil in 2006, compared to just 49 million tons in 1990. Sinopec is also known as China Petroleum & Chemical Corporation.