Reuters reported that top Asia oil and gas producer CNPC launched a major petrochemical project in the coastal province of Jiangsu a traditional bastion of its rival Sinopec Group.

According to the report, the project in the city of Yangzhong along the Middle Lower Yangtze River is scheduled to begin construction in 2010 with total investment of CNY 20 billion. Outlined in the plan, CNPC parent of listed arm PetroChina will build a refined fuel reserve a petrochemical logistics centre and a chemical raw materials producing base in the region.

The fuel reserve was in line with China plan to boost refined oil products storage capacity as part of efforts to enhance energy security and improve the country's ability to meet rising demand. A refined oil pipeline with a total length of 1,000 kilometers will also be built as an auxiliary facility. But the report did not elaborate on details of the pipeline.

CNPC has been ramping up investments in Jiangsu to increase its market share. The company is now building a joint venture LNG terminal in Rudong of Jiangsu. It also plans to add 300 gas stations in the province by 2015.

(Sourced from Reuters)