September 27, 2007 -- Huang Qifan, Chongqing's standing vice-mayor, has confirmed that Chongqing will develop its petroleum and chemical industry with a new continuous supply of oil, reported cqnews.net. Chongqing Municipal Government has signed an investment agreement with China National Petroleum to open up a hundred-million-ton level oil refinery plant in the third quarter of next year.

The Burma-Kunming-Chongqing oil pipeline, which is currently under construction, is said to be the main transportation channel for crude oil for the new refinery. A senior management from China National Petroleum revealed to cqnews.net that the oil refinery plant is expected to be located at Changshou.

The investment in this hundred-million-ton plant is approximately 15 billion yuan (US$1.9 billion). Upon production, the annual sales income is expected to reach 28 billion yuan (US$3.7 billion), with an annual output of 6.5 million tons. This is expected to help meet the demand for finished oil products in Chengdu.