China refiner expands despite US sanctions on Iran
A Chinese refinery operator, whose main business suffered when Washington sanctioned it in May over its purchase of Iranian oil, is pushing ahead with a $3.6billion petrochemicals extension project.
Construction at the Xinhai Chemical Site in Cangzhou, north China, shows how independent refiners in the country, Iran's biggest oil customers, maintain their business despite being on the growing Western blacklists aimed to curtail oil revenues for governments such as Tehran and Moscow, a report by Reuters said Monday as cited by "energynews" website.
State media reported that Hebei Xinhai Holdings Group, the parent company, announced a plan in early last year to convert the refiner into a producer of chemicals. The plan was worth 50 billion yuan.
A person with first-hand knowledge of the project said that half of this investment will be used for the first phase, which is scheduled to be completed by the end of 2026. The source declined to identify themselves due to the sensitive nature of the subject.