Ten million tons of oil pipelines from Kazakhstan to western China have now been docked, and the formal transportation of crude oil is approaching. Earlier, China has established a large-scale refinery with an annual output of 10 million tons and a million-ton ethylene project in Dushanzi, Xinjiang. Both projects will be completed in the next five years. By then, Dushanzi will become China's largest petrochemical base.
The Dushanzi large-scale petrochemical plant that is under construction covers an area of ​​more than 400 hectares and a total investment of over 26.0 billion yuan. It is the largest integrated refinery and chemical project ever invested by China National Petroleum Corporation, and it is another landmark project after the West-East Gas Pipeline project.
Dushanzi Petrochemical is a subsidiary of PetroChina and is located in Urumqi. 250 kilometers. At present, it has an annual refining capacity of 6 million tons, an ethylene production of 220,000 tons, and a total sales of 12.8 billion yuan last year. It is among the top 100 companies in China.
According to statistics, China’s oil consumption totaled 170 million tons last year, which is estimated to be 180 million tons this year. It is the second largest oil consumer in the world, second only to the United States. Ten million tons of oil imported from Kazakhstan will account for 5% of the total oil consumed in China each year.
In recent years, the Chinese government has actively pursued energy cooperation overseas and in neighboring countries. The 10 million tons oil export contract with Kazakhstan was signed in late 2003 by Chinese President Hu Jintao and Kazakhstan President Nursultan Nazarbayev. This is a successful example of China's search for energy cooperation abroad.
Xinjiang is rich in oil, natural gas, and coal resources, and the importance of its energy status in China is increasingly evident. Last year, it produced more than 22 million tons of crude oil. It is expected that after five years, the output of crude oil will double to 50 million tons. By then, Xinjiang will become China's largest oil producer.
According to a senior person from Xinjiang Petroleum, according to the plan, after the completion of the first phase of the refinery, 10 million tons of crude oil can be processed each year; the second phase of the project will add another 10 million tons of processing capacity. Crude oil imported from Kazakhstan will be refined and processed at this refinery, and then sold to Xinjiang, China, and Central Asian countries.
Although the oil pipeline has not yet been completed, Dushanzi Petrochemical has previously imported large quantities of oil from Kazakhstan through train and car transportation. Industry insiders estimate that oil from Kazakhstan will increase to 40% next year.