China Knowledge reported that China National Petroleum Corp or CNPC the parent company of PetroChina Co Ltd has signed an agreement with Qatar Petroleum International and Royal Dutch Shell Plc to jointly start a refining project in Taizhou, Zhejiang Province.

This is the further cooperation among the three sides after they inked a deal last October to import condensated and raw materials to produce ethylene and other petrochemical products.

The Taizhou refinery which will cost around CNY 80 billion in total is designed to have a crude oil processing capacity of 20 million tons and an ethylene output capacity of 1.2 million tons per year in the initial phase. Annual sales of the refinery are expected to reach CNY 100 billion.

The agreement inked in Doha, Qatar came at the end of a six-day trip by China Premier Mr Wen Jiabao to the Middle Eastern country. During the period, CNPC also signed a contract with Saudi Arabian Oil Co or Saudi Aramco to build a refinery in Yanbu, Saudi Arabia with a daily processing capacity of 400,000 barrels.

(Sourced from China Knowledge)