Petroleum Africa
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Thursday, October 30, 2008
China National Petroleum Corp. (CNPC) has begun construction of an oil refinery in Zinder, Niger. As part of an earlier agreement signed with the government of Niger, the refinery is estimated to cost $1 billion to construct.
The 20,000 bpd refinery is part of a $5-billion agreement signed in June that stated CNPC would pump oil from the Agadem block within three years. In addition, the company would build a 2,000-km pipeline to export it and be in charge of building the first refinery. The country is hoping to begin its energy independence with the increase from its current 7,000 bpd.
In neighboring Chad, CNPC has begun construction on another refinery. The company holds a 60% stake in the joint venture with its Chad partner taking the remaining 40%. The refinery is located north of Chad’s capital N’Djamena and will have a capacity to process one million tons of crude oil per year. The refinery will produce about 700,000 tons of gasoline and diesel, as well as 20,000 tons of kerosene annually.
The refinery is expected to start operations in 2011.
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