Chinese Yulong Petrochemical Signed Oil Deal with BP, Chevron

SEATTLE (Oil Monster): The Chinese Yulong Petrochemical announced that it has signed memorandum of understandings (MoUs) with BP and Chevron towards supply to its greenfield refinery in northern China. The new project is touted as the latest step in the wave of refining expansion happening across the country.

Incidentally, the commercial operations at the complex in Chinese Shandong province, comprising of the refinery plant and ethylene complex is expected to begin by December next year. According to sources, the new refinery is getting itself ready to carry out test runs in the latter half of the current year.

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The Yulong refinery complex will accelerate the province’s efforts to streamline the refining sector by closing down inefficient plants and promoting large and competitive plants. The province has closed down at least 10 small-size refineries with combined refining capacity of more than half-a-billion barrels per day by the end of the previous year.

Meantime, the local administration announced plans to set up a new chemical plant in close proximity to the Yulong project, which will focus on production of high-end-chemicals such as degradable plastics and special fibre.

The majority owners of Yulong Petrochemical are Nanshan Group and Shandong Energy Group, which owns 51% and 46.1% stakes respectively.