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PetroChina To Invest CNY 3.2 Bn In Xinjiang

|Includes:PetroChina Co., Ltd. (PCCYF), PTR

Source: Xinjiang Daily, ChinaScope Financial (Data)

+ Construction of PetroChina's (PTR: NYSE; 0857: HKG; 601857: SHA) chemical fertilizer project located in the city of Aksu in Xinjiang started yesterday. Total investment in the project will be CNY 3.2 billion.

+ Upon completion in 2015, the chemical fertilizer project will produce 450,000 metric tons of synthesis ammonia and 800,000 metric tons of urea annually. PetroChina's sales revenue derived from the project is expected to be approximately CNY 1.3 billion a year, and its profit and tax gained from the project will likely exceed CNY 80 million a year.

Urea production is only a tiny part of PetroChina's (PTR: NYSE; 0857: HKG; 601857: SHA) business, but the fertilizer industry is a strategic focus of the government as it supports the agricultural sector and makes it possible to utilize coal in regions with lack of transportation.

Stocks: PCCYF, PTR