PetroChina, a leading Chinese oil producer and refiner, plans to expand a refining and storage base in Qinzhou, south China's Guangxi Zhuang Autonomous Region, an official with the municipal government confirmed Monday.

The project, the second phase at the site, would have a designed annual refining capacity of 10 million tonnes. The first phase also had 10 million tonnes of refining capacity, the official said.

According to Liang Xinyue, head of bureau in charge of investment absorption at the Qinzhou Port economic development zone, the second-phase project will also include a 1-million-tonnearene (major industrial chemical) facility, a 3-million-tonne storage facility for crude and a 1-million-tonne storage facility for refined products.

Liang said the annual output value of the two phases would be 300 billion yuan (43.9 billion U.S. dollars). It would likely make Qinzhou a major oil refining and petrochemical production base.

Liang didn't disclose the cost of the second phase, but he said the first phase cost about 15.3 billion yuan.

Source: Xinhua