China National Offshore Oil Corp or CNOOC, one of the country's three major oil and gas groups, signed an agreement on March 18 with the Taizhou Medical High-tech Zone – located in Taizhou city, in East China's Jiangsu province – to build a high-grade lubricant oil plant there.
A lubricant oil plant is a facility that processes crude oil to produce various grades of lubricating oils and greases. The lubricant are essential for reducing friction, preventing wear and tear and ensuring the smooth functioning of machinery and vehicles.
Under to the agreement, CNOOC will invest 5 billion yuan ($695 million) to build the facility.
It's the second phase of a petrochemical complex, with subsidiary CNOOC (Taizhou) Petrochemical Co spending 10 billion yuan to complete phase one in 2016.
Apart from lubricants oil production, phase two will also involve the construction of a research and development center for lubricants technology.
It's projected that the new plant will increase CNOOC's current annual output of high-end lubricants and special-purpose oils from 600,000 metric tons to 1.4 million tons on completion.
It will also make the zone China's biggest lubricants oil hub, with a full range of high-end products.
After several years of development, the company has grown into the only high-end lubricants producer in China that integrates base oil output, lubricants research and development, blending and sales. Its brand – Haijiang – has gradually gained recognition from the public.
An overview of the facilities currently being managed by CNOOC (Taizhou) Petrochemical Co. [Photo/Taizhou Medical High-tech Zone via WeChat weigg6666]