PetroChina plans to invest over 27.4 bln yuan for downstream sector expansion

HONG KONG (AFX-ASIA) - PetroChina Co Ltd vice president Zhang Zhixin said the company is planning to invest more than 27.4 bln yuan to expand its petrochemical downstream business, starting from next year. Cited by the Hong Kong Economic Times, Zhang said over the next five years, the company will spend 12 bln yuan to raise the production capacity of the downstream business by 78 pct. In the report, Zhang did not disclose the entire time frame for the 27.4 bln yuan investment. Zhang said the company has adequate cash to finance the business expansion plan. However, he said the company is also considering to issue A shares, adding PetroChina and the China Securities Regulatory Commission are in discussion about the A share issuance possibility. Meanwhile, Zhang said PetroChina produced about 105 mln tonnes of crude oil last year, accounting for 67 pct of China's total supply. He said the company is studying the possibility of investing in some joint projects in Pakistan and Russia.

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