Chongqing Longhai Petrochemical Co. plans to invest USD 272 million in the construction of a heavy oil refinery in the Fuling District of Chongqing Municipality. Longhai had signed an agreement with the district government in April 2007. The first phase of the refinery will have the capacity to process 500,000tpy of crude oil. The second and third phrases of the project will expand the capacity to 2 million tons per year. This will be the first heavy oil refinery in SW China. The refinery’s designed annual production is 1.1 million tons of diesel, 330,000tns of gasoline, 63,000tns of liquefied petroleum gas, 287,000tns of coke and 30,000tns of sulfur. The long-term annual value of production is expected to reach between USD 1.08 billion and USD 1.36 billion. Longhai will import crude oil from overseas for this refinery. It plans to receive international oil shipments at Shanghai Port and then transfer them to Chongqing. For this purpose, Longhai plans to build its own oil ship locks.
