Port of Qinhuangdao invites Investment on Oil Product Business

“The Regulation on Product Oil Market” and “The Regulation on Crude Oil Market” were released by the Ministry of Commerce of the PRC in Dec. 2006, and put into effect from Jan 1st, 2007, which allows foreign enterprises to operate and manage the wholesale of domestic crude oil and product oil.

Qinhuangdao Port Group releases the project of cooperation and joint ventures on oil product business according to our strategic plan.

Advantage Analysis on the Projects
Port of Qinhuangdao has abundant experience on loading/unloading, sewage disposal, security and fireproofing and cost management since over 20 years of petroleum handling and storage, which can offer the customers safe and efficient service.
 
A. Strong potential capacity in berths
Four berths on the oil terminal comprise two 20,000dwt berths, one 50,000dwt berth and one 3000dwt berth. Import and export capacity of crude oil and oil product is 15.40 million tons per year. The throughput of 2006 was 5.53mlt, leaving great potential.

B. Plenty capacity of oil tanks
280,000 cubic meters self-owned oil tanks plus 1,009,000 cubic meters oil tanks of the harbor periphery are serving the oil port.

C. The port enjoys well developed distribution network and vast hinterland and various means of transportation such as pipeline, railway and road are available.

At present two pipelines, Tieling-Qinhuangdao and Beijing-Qinhuangdao run through Qinhuangdao, radiating Northeast China and North China. Tieling-Qinhuangdao pipeline was put into operation in 1973, 454.25km in length. The designed annual capacity is 20 million tons and actual throughput is 18 million tons per year. While Beijing-Qinhuangdao pipeline began to serve from Jun, 1975 and running 349.19km long. The designed annual capacity is 6 million tons and was increased to 7.5 million tons after reconstructed in 2003. The stations of Changli, Qian’an, Fengrun, and Baodi and Daxing are set alone the line with Qinhuangdao as the initial station and Shilou as the final.
 
In 2003, railway loading & unloading platforms with 64 berths and platforms with 10 trucks are invested and constructed for handling both crude oil and product oil. The product oil Pipeline are planned to serve in 2008 running through the city of Fushun, Jinzhou, Qinhuangdao, Beijing, Shijiazhuang and Zhengzhou, which shall further improve the product oil distribution capacity of Port of Qinhuangdao.

Theoretically, the hinterland refineries of Port of Qinhuangdao consist of the city of Shijiazhuang, Cangzhou, Baoding, Beijing Yanshan Petrochemical Co., Ltd. and NO 5 & NO 6 Branch of CNPC. These oil enterprises can utilize current pipeline storage capacity for import. The crude oil and petro & chemical raw materials from the city of Shijiazhuang, Cangzhou and Baoding can be distributed by railway. The railway transportation distance is between 300km and 600km, economical and rational.
 
D. Reserved land resources
Presently, we have two separated pieces of reserved land. One covers about 900mu (1mu=0.0667 hectares) by reclamation twice. That looks like the handle of a knife and links directly to the1300m coastline. There are two strips of the land are among the navigation visual range. The height limit within this area is 12m according to the regulation, totally covering 210mu. The other piece covers about 300mu by land expropriation twice. The lands mentioned above can be used to construct the infrastructure for tanks, pipelines, railway platforms and etc.

 The information of “Nation-wide Coastal Port Layout (Draft for Discussion)”issued by the Ministry of Communications in 2004 indicates that crude oil import by foreign trade of nation-wide ports until 2010 will reach 1.9 billion tons with an annual increase of 10 percent on average, showing a booming trend.
 
Strategy & Plan
The strategic goal of oil product business is to establish an unloading base for import crude oil, import & export product oil and chemical product; provide the port with railway, road and pipeline distribution functions and turn the port into a pivot port serving Northeast China and connecting the East China with South China. Presently, the annual throughput is 15.4 million tons. The construction of deep water oil berths will be the stress during “Eleventh-Five-Year-Plan”(2006-2010), which will highly improve the oil throughput.
 
Following projects will be put on a high agenda for the next 5 years.    
1. Deep water oil berth
Recently, a deep water oil berth will be built at the south end of Phase 2 Oil Terminal, adding an annual throughput of 10 million tons.
 
2. Dedicated chemical product berth
During the “Eleventh-Five-Year-Plan”(2006-2010), Qinhuangdao Port Group will build a 20,000dwt dedicated chemical product berth, adding an annual throughput of 1.23 million tons.
 
Modes of Cooperation on Oil Product Business
Choosing domestic or international professional companies engaging in oil product related business as candidates, taking the advantage of our partners and port itself, exploring oil product resource, we aim to enhance and strengthen oil product business. We will cooperate with professional partners to construct deep water oil berths and explore product oil and chemical product business.

 Contact us: +86-335-3098834 Enterprise Planning Dept., Qinhuangdao Port Group Co., Ltd.