Petroleos de Venezuela SA (PDVSA) and China National Petroleum Corp. (CNPC) have entered a series of agreements related to development and operation of the long-planned Nanhai 400,000-b/d refinery in Jieyang, Guandong Province, China.
Alongside formation of a joint venture to be named Petrochina-PDVSA Guandong Petrochemical Co. Ltd., the agreements outline terms both for supply of Venezuelan crude to be processed at the refinery as well as sale of finished products that will be produced at the site, PDVSA said.
The Nanhai refinery will process a mix of Venezuelan heavy Merey 16 and DCOM 16 crude from PDVSA-CNPC’s jointly developed Petrourica and Petrosinovensa projects in Venezuela’s Orinoco heavy belt, or other sources, to be delivered to China using CV Shipping Pte. Ltd.—a Chinese-Venezuelan JV—as a first choice for transportation.
PDVSA, which signed the agreements on June 7 in Beijing, also held meetings with China Development Bank to discuss financing for about 700 projects in different areas, including the petroleum sector, the state-run company said.
First approved by the Venezuelan and Chinese governments in 2009, the Nanhai refinery is scheduled for startup by yearend 2020, according to local media reports out of Venezuela.