(EnergyAsia, February 27, Friday) — The QingLanShan crude oil terminal serving the joint venture Fujian oil refinery in China was inaugurated last week at a ceremony marking the arrival of the first cargo of Saudi crude oil.
The 900,000-barrel cargo of Arabian Extra Light was delivered by the tanker Cosbright Lake from Ras Tanura to QingLanShan in the southeastern Chinese province of Fujian.
The terminal, the crude-oil receiving port of the Fujian Refining and Petrochemical Co Ltd (FREP) joint venture, was built to handle very large crude carriers of at least 300,000-ton capacity.
FREP, which is developing a large integrated refining and petrochemical manufacturing complex, is jointly owned by Fujian Petrochemical Co Ltd, Saudi Aramco Sino Co Ltd (SASC) and ExxonMobil China Petroleum and Petrochemical Co Ltd. The company was established on March 31, 2007.
The $5 billion project includes a 240,000-barrel-per-day refinery and will produce 2.2 million metric tons of petrochemicals a year when it starts up in the next few months. China wants to double the complex’s refining capacity to 480,000 b/d by 2015.
Officials from the local Fujian government and Sinopec, and shareholders’ representatives attended the ceremony. On behalf of Saudi Aramco, Ibrahim Q. Al-Buainain, its director for Asia Joint Ventures, said:
“With the inauguration of this deep-water terminal, FREP-JV is demonstrating its readiness to help meet China’s domestic oil demand as well as future demand.
“The arrival of the Arabian crude oil to this terminal signifies Saudi Aramco’s supply commitment as a shareholder, and I would like to assure you that a stream of Saudi Arabian crude is now making its steady flow to Fujian province and that it will continue for many generations.”