CNPC to build RMB 20-bln petrochemical base in Jiangsu

Oct. 26, 2009 (China Knowledge) - China National Petroleum Corp, the parent of PetroChina Co Ltd<601857><0857><PTR>, plans to invest RMB 20 billion to build a petrochemical base in Yangzhou, Jiangsu Province, sources reported.

According to a strategic investment agreement signed with the Jiangsu government yesterday, CNPC will start construction on a refined oil reserve and a logistics center in 2010. In addition, the oil giant will build a base for producing chemical raw materials and a 1,000-kilometer refined oil pipeline.

CNPC owns part of a liquid natural gas terminal that is currently being built in Rudong, Jiangsu. The terminal, which will be completed in 2011, will have an annual capacity of 3.5 million tons. CNPC plans to add 300 gasoline stations in the province by 2015.

Reportedly, Sinopec Group, the rival of CNPC, recently discovered a large natural gas field. It covers an area of around 340 square kilometers and is predicted to have reserves of 120 billion cubic meters.