CNPC Inks Oil, Gas Deal with Zhuhai

Source: Shenzhen Daily

China National Petroleum Corp. (CNPC) signed a framework deal over the weekend with the Zhuhai city government to cooperate in oil refining, sales and natural gas, a company newspaper reported yesterday.

The China Petroleum Daily gave no details on the terms of the deal, including the scale of investment and when cooperation would start in Zhuhai.

A refiner of CNPC in Dalian in northeastern China. (CNPC photo)

PetroChina, CNPC's listed arm, plans to build a second South China refinery, with capacity of 200,000 barrels per day, in Zhuhai, and a company official expected no regulatory hurdles to the plan, domestic media reported in August.

A natural gas unit of CNPC also signed an agreement in July to take over a gas operator in Zhuhai and gained the rights to run gas networks in the city.

CNPC, China's top oil and gas producer and with a strong presence in North China, is building its first South China refinery in the Guangxi region, which it hopes to complete by 2009.

Editor: Ronald Li