SAEDNEWS: 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, northern China, illustrates how independent refiners in the country—among Iran's largest oil customers—continue operating despite appearing on growing Western blacklists aimed at curbing oil revenues for governments such as Tehran and Moscow, according to a Reuters report cited by EnergyNews on Monday.
State media reported that Hebei Xinhai Holdings Group, the parent company, announced a plan early last year to convert the refinery into a chemical producer, a project valued at 50 billion yuan.
A person with direct knowledge of the project said that half of the investment will go toward the first phase, scheduled for completion by the end of 2026. The source requested anonymity due to the sensitive nature of the subject.
In May, the U.S. Treasury designated Xinhai Chemical—the unit operating a refinery with a 120,000-barrel-per-day capacity—and several Chinese oil terminal operators for purchasing hundreds of millions of dollars’ worth of Iranian crude oil, part of the Trump administration’s efforts to pressure Tehran to limit its nuclear activities.
