Boats & Stocks

[Capt_Nemo]

Wednesday June 5, 3:39 am Eastern Time
China's Shangdong Starts Building Oil Terminal In Penglai

SINGAPORE -(Dow Jones)- Local authorities have begun construction of an oil terminal in China 's Penglai county to facilitate increased production of heavy crude by China National Offshore Oil Corp., a local official told Dow Jones Newswires Wednesday.

He said the terminal will have the capacity to handle oil tankers as large as 20,000 metric tons each.

The cost of construction is estimated 210 million yuan (US$1=CNY8.28) and will involve building oil tanks with a total storage capacity of 200,000 tons as well as other offsite infrastructure. Construction is expected to be complete next year, the official said.

A larger plan calls for building a bitumen plant and a fuel oil blending plant, he said, without giving details of costs or an expected timetable for the two plants.

He said the terminal and the bitumen and blending plants will handle and process increased volume of heavy and bitumen-rich crude oil produced by CNOOC from the Bohai Sea in northern China .

Penglai is in the northeast of Shandong province.



-By Xu Yihe, Dow Jones Newswires; 65-6415-4068; [e-mail]
http://biz.yahoo.com/djus/020605/200206050339000153_1.html

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