CNPC to enter bio-fuel market with Honeywell

Published: 05 Nov 2009 23:26:38 PST

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Nov. 6, 2009 (China Knowledge) - China National Petroleum Corp, the parent of PetroChina Co Ltd<601857><0857><PTR>, has signed a memorandum of understanding with UOP LLC, a subsidiary of Honeywell, to jointly develop a series of bio-fuel projects in China, according to a statement released by UOP on Wednesday.

According to the plan, the two partners will engage in research and development to produce bio-fuels, diesel and jet fuel using feedstock from China.

Reportedly, Sulige Gas Field, which is owned by CNPC and is located in Ordos, Inner Mongolia Autonomous Region, is expected to increase its daily output to 30 million cubic meters of natural gas by the end of this year. As of Jun. 25, the gas field's daily output was 25 million cu m.

CNPC predicted that the gas field will produce 23 billion cu m in 2015, which averages to 63 million cu m per day.