During the CICA Summit, China has signed several energy cooperation agreements with Russia including the work schedule for oil refinery between CNPC and Rosnefit Oil. The oil refinery will locate at Binhai New Area in Tianjin, which is the core project of local petroleum industry chain. It is estimated that the capacity of oil refinery will reach to 160 million tons per year after being finished. 

 

The Sino Russian joint oil refinery is invested by CNPC and Rosnefit Oil. Two corporations have established joint venture in Tianjin. Rosneit Oil takes up 49% of shares and CNPC takes up 81% of shares. The relevant agreements had been signed in 2010.

 

Relevant persons from local government or construction company who participates in the construction of oil refinery introduce that the most capacity of new-built oil refinery will be used to produce light petroleum products. Beside gasoline fuel and liquefied natural gas, oil refinery will also produce other petroleum products like aromatic hydrocarbons and polypropylene. Initially, the capacity is designed to 130 million tons and reaches to 160 million tons after being demonstrated. 

 

Wang Lijiu, researcher of China Institute of Contemporary International Relations said that the oil refinery meant energy cooperation between China and Russian upgrading. In the past, for exporting to China, Russian focused on crude exporting. Currently, Russia starts to set foot in crude processing industry. That promotes the improvement of industry chain and deepening of energy cooperation between two states.

 

Petroleum is one of pillar industries in Tianjin. In 2010, the total output valve of petroleum in Tianjin reached to 400 billion RMB. It is predict that the output valve will break through 800 billion RMB in 2015.

 

Before the oil refinery project, Sinopec and SABIC invested in 1 million tons ethylene project and 10 million tons oil refining project. Both economic benefits and circulative economy indicators reach to expected goal when went into operation in 2010.