Sinopec Group will complete the construction of a 12.5 billion yuan refinery in Qingdao in East China's Shandong Province by the end of January, a move to further tap rising demand.
The project is designed to process 10 million tons of crude annually. It will produce 7.6 million tons of refined oil per year, and annual sales revenue of the plant is expected to cross 30 billion yuan a source with Sinopec told China Daily.
Sinopec started construction of the plant in June 2005 with preparation dating back to the 1990s.
At a company meeting last week, Sinopec President Wang Tianpu said work on the plant was going smoothly.
"The project will boost the company's refinery business as well as increase its market share," Sinopec said on its website.
Analysts said the project will boost domestic refined oil supply. China, the world's fastest growing economy, wants to increase oil processing capacity by 25 percent by 2010 to meet rising demand for fuels and petrochemicals.
In October and November, facing shortages, top Chinese oil producers Sinopec and PetroChina were running at full capacity and trying to draw on stockpiles as much as possible.
PetroChina, the nation's biggest oil producer, is poised to increase oil-refining volume by nearly 12 percent this year, according to its senior officials.
Earlier this month, the government gave the go-ahead to Sinopec to start with Kuwait Petroleum Corp the groundwork on an oil refinery and chemical project in South China's Guangdong Province. With a planned investment of $5 billion, it would be the largest joint venture in China.
Also this month Sinopec signed a contract with the Iranian oil ministry on the development of the Yadavaran oilfield in southwestern Iran.
The initial estimate of the project's cost is about $2 billion. It will be carried out in two phases.
（英语点津 Celene 编辑）
About the broadcaster:
Brendan is an Australian who has been involved in education and writing for over a decade. He has published most recently for the Tiger Airways Inflight magazine, The Bangkok Post, The Taipei Times and Japan's Hiroshima Outside Magazine. He holds a Masters Degree in Community Development and Management and has resided in China for over 3 years.
