China Petrochemical Corp., the nation's second-largest oil company, started work on a crude oil pipeline and storage tanks to boost its distribution network as it expands processing capacity in northern China.
China Petrochemical, or Sinopec Group, is building a 230- kilometer (143-mile) oil pipeline linking the port city of Tianjin with Beijing, and two storage tanks, the State-owned Assets Supervision and Administration Commission, said on its Web site today.
The first storage tank in Tianjin will have a capacity of 600,000 cubic meters and the second 800,000 cubic meters, the commission said, without providing details of costs or timing.
China's oil consumption is rising, partly because of increased demand for oil products such as naphtha, used as a raw material in chemicals. Chinese chemical companies are expanding output as they sell more of their products for use in autoparts, packaging and plastics.
Sinopec Group is the parent of overseas-listed China Petroleum & Chemical Corp. (600028), Asia's biggest oil refiner.
China Petroleum, or Sinopec, is expanding the oil processing and chemical-making capacity of its refineries and plants in northern China including at Tianjin. Part of the expansion includes building a 21 billion yuan ($2.6 billion) chemical project with a one million ton-a-year ethylene plant.
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