PetroChina to Double Capacity of Huabei Refinery to 10 Million Tons a Year

PetroChina Co., the country’s biggest oil company, obtained government approval to double the capacity of its refinery in the northern province of Hebei as the nation faces an oversupply of fuels.

Capacity at the Huabei refinery will increase to 10 million metric tons a year and the expanded facility should start production in December 2012, parent China National Petroleum Corp. said in its online newsletter today. The plan has been approved by the National Development and Reform Commission.

The world’s fastest-growing major economy is boosting oil- processing capacity to meet rising fuel demand in the long run. The nation’s oil products supply will exceed demand this year as it adds 31.5 million tons a year of refining capacity, according to a report on China energy published by CNPC in February.

The Huabei refinery will have the capacity to supply 8 million tons of fuel that meet Beijing IV standards after upgrading units through the expansion, CNPC said today. Beijing IV is a regional benchmark that’s equivalent to Euro IV specifications.

PetroChina is preparing to build petrochemical units at the refinery including a 1 million-ton-a-year ethylene plant, according to the newsletter, without giving further details.

To contact the reporter on this story: Baizhen Chua in Beijing at bchua14@bloomberg.net

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