More work for Sinopec

China’s Sinopec Group is planning to build a refinery and crude oil storage facility in Guangxi, China. The $1.53bn agreement with the city of Beihai anticipates construction of a 3.2m tonne crude oil storage facility along with an oil dock at the port of Weizhou. The project includes a refinery and two pipelines. One pipeline will deliver oil products from Beihai to the regional capital of Nanning and the other will deliver crude oil from the port of Tieshan to Zhenjiang.
China aims to create a “Gulf of Tonkin” oil production base aimed at improving the country’s commercial reserve capacity as well as relieving local fuel shortages. Sinopec’s competitor, the China National Petroleum Corp, is scheduled to complete its own 10m tpa refinery in Guangxi by the end of this year.

The company recorded a profitable first quarter. Dai Houliang, senior vice-president and chief financial officer of Sinopec, says, "In the first quarter 2009, the company achieved profits in all the segments. Under the government’s new pricing mechanism for refined oil products and tax reform, we have fully utilised our advantages in production scale, cost control, structurally integrated operation and management, and turned the refining segment into a major profit generator for the company. In addition, the chemical segment has greatly improved its profitability.”
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