OREANDA-NEWS. November 17, 2011. China ZhenHuaOil Co., Ltd. and Yingkou Port Group Co., Ltd. (Yingkou Port Group) signed the Agreement for the Lease of the Tank to be Built (Tank Lease Agreement) and the Letter of Intent on Project Cooperation (Letter of Intent) in Yingkou, marking the official launch of China ZhenHuaOil’s Yingkou Port-based crude oil storage base construction project, reported the press-centre of NORINCO.

According to the Tank Lease Agreement, Yingkou Port Group will start construction of the 1-1.2 million m3 (subject to the formal plan) crude oil storage tank in Xianren Island Harbor District on November 1, 2011 and finish the project and lease it to China ZhenHuaOil by the end of 2012 for a lease period of 20 years. In accordance with the Letter of Intent, after approval of China North Industries Group Corporation (NORINCO), China ZhenHuaOil plans to register and establish a crude oil commercial storage logistics company in Yingkou, and take it as the main body to invest in the construction of a 2 million m3 crude oil tank and its supporting facilities in Xianren Island Harbor District. The project covers an area of some 500,000m2, which will be sold by Yingkou Port Group to ZhenHuaOil for the latter to register a new company.

Xianren Island Harbor District of Yingkou Port, located in the middle section of Liaodong Peninsula, is a comprehensive harbor area based on petroleum & chemical projects and is where Liaoning Huajin Chemical Industry Group Co., Ltd. (Huajin Group) subordinated to NORINCO is located. The smooth signing of the Tank Lease Agreement and the Letter of Intent offers a strong guarantee for China ZhenHuaOil to construct a larger-scale tank area in the vicinity of the downstream refinery of NORINCO, further enhance the flexibility of crude oil purchase and strengthen the supply guarantee capacity within the system; is of far-reaching significance to the effective support for the sustainable development of NORINCO’s petrochemical industry chain; and lays a more solid foundation for the enhancement of China ZhenHuaOil’s status in national energy field, enhancement of its discursive power and expansion of its influence.