CNPC Starts Work on Jinzhou-Zhengzhou Oil Products Pipeline

Construction of an oil products pipeline from north China’s Liaoning Province to central Henan Province has officially started, the project’s builder and operator China National Petroleum Corp. (CNPC) said on Thursday.

The 1,636-kilometer pipeline will run from Liaoning’s Jinzhou City to Zhengzhou City in Henan via Hebei Province and Tianjin Municipality, said CNPC.

Scheduled to come online in September 2014, the pipeline has a planned annual capacity of 13 million tons and will cost an estimated RMB 8 billion ($1.27 billion) to build, according to CNPC.

“CNPC’s pipeline will transmit oil products from the north, where many of China’s oil refineries are located, to central parts of the country that suffer from major shortages,” Han Qiang, an energy researcher, told Interfax on Thursday.

Chinarefined 448 million tons of crude oil in 2011, according to data from the National Development and Reform Commission. Liaoning accounted for 63.52 million tons, making it the country’s biggest oil refining region by output.( Edited by Topco )