Project Profile
Location: Jieyang City, Guangdong Province, China
Estimated Investment: US$9.45 billion
Capacity: 20 million tpy
Completion: 2021
Petroleos de Venezuela SA (PDVSA) and China National Petroleum Corp. (CNPC) have entered a series of agreements related to development and operation of the long-planned 20 million tpy (400,000 bpd) Guangdong refinery in southern China, adding a 2.6 million tpy aromatics plant and 1.2 million tpy steam cracker to the project. The additions raise the estimated price tag to US$9.45 billion from an initial estimate of US$7.94 billion made in 2012. CNPC is expected to provide 65% of the project financing with the remainder to come from bank loans.
The Guangdong refining and petrochemical project, which will be located at Jieyang in the southern Guangdong province and known as the Jieyang or Nanhai refinery, will be built by a joint venture between CNPC and PDVSA called PetroChina/PDVSA Guangdong Petrochemical Co. Ltd. The Nanhai refinery will process a mix of Venezuelan heavy Merey 16 and DCOM 16 crude from PDVSA-CNPC’s jointly developed Petrourica and Petrosinovensa projects in Venezuela’s Orinoco heavy belt, or other sources, to be delivered to China using CV Shipping Pte. Ltd. (a Chinese-Venezuelan JV) as a first choice for transportation. The work is scheduled to resume in October 2018 and the refinery is expected to be commissioned in 2021.
Operators:
CNPC: 60% interest
PDVSA: 40% interest