Life of GuangZhou - PetroChina to Build South China's Largest Refined Oil Depot in Guangzhou

Nansha of Guangzhou (file photo)

PetroChina Company will establish South China's largest refined oil depot and product distribution center on Xiaohu Island in Huangge Town of Nansha District in Guangzhou.

PetroChina International Company and the Administration of Guangzhou Nansha Economic and Technological Development Zone signed a strategic cooperation framework agreement in Guangzhou on June 22.

Data shows that items listed on the project include a refined oil depot, pier construction, refined oil product trade, construction of a petrochemical logistics and distribution center, fueling services for international ships, ships for both fire fighting and towing functions, and other relevant supplementary items.

PetroChina will build a refined oil depot with a total storage capacity of 765,000 cubic meters and a harbor with a capacity to handle 80,000 tons of refined oil products on Xiaohu Island. The project can deal with 500,000 tons of refined oil each month. This is PetroChina's largest refined oil depot and distribution center for important refined oil products in South China.

Chinaoil is a wholly owned subsidiary of PetroChina. China National Petroleum Corporation (CNPC) views the Guangzhou Nansha project as a key move for its development and planning, and a supporting point for its supply chain of refined oil products in South China. The project is expected to be completed by the end of 2009.

As a supplementary project, China Petroleum Transportation Corporation and Guangzhou Nanye Storage Company plan to jointly invest 350 million yuan to construct a petrochemical logistics and distribution base on Xiaohu Island. Following its completion, the base can increase annual turnover by 350 million yuan.

China Marine Bunker (PetroChina) Company and Guangzhou Hongye Group also agree to establish a joint venture company.

With PetroChina's Nansha oil depot piers as the base, the joint venture will provide fueling and foreign ship supply services for international ships in the Pearl River Delta region. Its annual fueling capacity can reach over 1 million tons, with annual turnover exceeding 3 billion yuan.

Information shows that at present numerous well-known central state-owned enterprises (SOEs)—including China State Shipbuilding Corporation, Dongfang Electric Corporation, China Xi'an Electric Group, PetroChina, China Datang Corporation, China Shipping (Group) Company, Baosteel Group Corporation, China Resources Power Holdings Company and China North Industries Corporation—have invested in 26 projects in Nansha.

The industries span shipbuilding, energy equipment, petrochemicals, port logistics, high-end new technologies, infrastructure and the service sector. Recently, Dongfang (Guangzhou) Heavy Machinery Company successfully manufactured and delivered five vapor generators for the Ling'ao Nuclear Power Station's second phase project. This indicates that China has localized the manufacturing of key nuclear power equipment.