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CNPC, Chad Sign Deal for N'Djamena Refinery

Oil & Gas Journal (8/31/09)


LONDON, Aug. 27 -- China National Petroleum Corp. (CNPC) plans to start the first refinery in Chad in partnership with the country’s government by 2011.

The parties signed a memorandum of understanding Aug. 24 for the N'Djamena refinery to establish a joint venture, secure a loan, and apply for a preferential export buyers’ credit.

In 2008, the foundation was laid for the 2.5 million tonne/year refinery, which is 60% owned by CNPC and 40% owned by the Chadian Ministry of Petroleum (OGJ Online, Oct. 10, 2008).

Rebel attacks were launched on the capital in 2008, which delayed the start of construction. The refinery is expected to cost as much as $960 million.

The refinery will initally serve local markets and could later provide products to nearby states.
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