Shaanxi Yanchang Petroleum (Group) Co., Ltd. and KBR Announce Intent to Create a Joint-Venture Company
June 23 2011 - 9:05AM
Business Wire
Shaanxi Yanchang Petroleum (Group) Co., Ltd (Yanchang Petroleum
Group) and KBR, Inc. today announced they have signed an agreement
to create a Joint-Venture company in the People’s Republic of
China. The purpose of the Joint-Venture will be to market, sell,
deliver and support Veba Combi Cracker (VCC) technology, under
KBR’s collaboration agreement for the technology with BP.
The Joint-Venture will be operated by the Yanchang Petroleum
Group’s subsidiary company Beijing Petrochemical Engineering Co.,
Ltd (BPEC) and by KBR’s Technology Business Unit.
VCC technology is a hydrogen addition technology suitable for
processing refinery residuum, coal tar and coal oil mixtures into
high-quality distillates or synthetic crude oil in the refining,
upstream field upgrading and coal-to-liquids (CTL).
"The option to convert unconventional feedstocks such as heavy
oil, coal-tar and coal-oil mixtures will be key in meeting China’s
transport fuel demand for the next 25 years," said Mr. Liu Chunquan
President of BPEC. "VCC is a highly competitive process for
maximising transport fuel yield from heavy oil and coal. We are
very pleased to be collaborating with KBR on the use of VCC in
China to maximize liquid fuel yields, whilst minimising
environmental impacts of heavy and unconventional feedstocks."
“The formation of a Joint-Venture with the Yanchang Group is
consistent with KBR Technology’s growth strategy for our bottom of
the barrel refining technologies. The strength of this
Joint-Venture lies in the synergies between KBR’s technology, the
Yanchang Petroleum Group’s resources and BPEC’s engineering
expertise. We look forward to jointly pursuing commercial
opportunities for VCC Technology throughout China,” said John
Derbyshire, President, KBR Technology.
The Yanchang Petroleum Group is one of the four qualified
enterprises granted rights for oil and gas exploration in China.
The Yanchang Group has rich resources of coal and coal tar with
current coal tar production of 3 million tons / year which will
exceed 6 million tons / year within 5 years. The Yanchang Group’s
refining and processing capacity exceeds 15,000,000 tons / year
producing gasoline, diesel and about 3 million tons/year of heavy
oil (residue).
BPEC is a 51% owned subsidiary of the Yanchang Petroleum Group
and has a class A engineering design, engineering consulting
license for chemical and petrochemical industry as well as the EPC
General Contractor, Project Management Consulting (PMC) certificate
issued by the Chinese central government.
KBR is a global engineering, construction and services company
supporting the energy, hydrocarbon, government services, minerals,
civil infrastructure, power, industrial, and commercial markets.
For more information, visit http://www.kbr.com.
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