China’s National Development & Reform Commission has given approval for a joint venture refinery between CNPC and Venezuela’s PDVSA.
The approval allows the firms to undertake feasibility studies for the 400,000 barrel-per-day refinery in south China’s Guangdong province.
The refinery will enable Venezuela to gain a new market for crude oil and decrease dependence on the US, according to Reuters.
The project would require an investment of about $10bn, and will help secure fresh long-term crude supply for processing into much-needed fuels to power the Chinese economy.
