CNPC plans 10 mln tonne east China refinery -paper

BEIJING, Dec 25 (Reuters) - China's top oil and gas producer, China National Petroleum Corporation (CNPC), plans to build a refinery in eastern Shandong province, with capacity of more than 200,000 barrels per day, the China Daily reported on Tuesday. The parent of Hong Kong- and Shanghai-listed PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz) (601857.SS: Quote, Profile, Research, Stock Buzz) (PTR.N: Quote, Profile, Research, Stock Buzz) has signed an agreement with the provincial government to cooperate on large projects and oil and gas retail networks, the official paper said, citing a company source.

The refinery is planned for coastal Weihai city, the report added, but did not say when construction or production at the planned plant might start.

CNPC plans a similar 10 million tonne refinery in land-locked southwestern Yunnan province and has signed deals with Henan and Gansu provinces for further cooperation, the paper said.

China is reliant on foreign oil to meet nearly half its oil needs but prefers shipping in crude to importing refined oil products, so is keen to build new refineries to satisfy rapidly growing domestic demand.

But because of worries about energy security, Beijing is also pushing its firms to boost domestic crude output.

PetroChina has produced 20 million tonnes (146 million barrels) of oil from its Changqing oilfield in the northern Ordos basin this year, making it the country's third-largest field after Daqing and Shengli, the official Xinhua news agency said.

Production at the Karamay field in northwestern Xinjiang province also nudged up from 2006 levels to reach 11.97 million tonnes, Xinhua reported. (Reporting by Emma Graham-Harrison; Editing by Edmund Klamann)