China to Refurbish Cuban Oil Refinery

Sunday, 05 Jun 2011 08:17 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

HAVANA - China signed a letter of intent to refurbish a Cuban oil refinery and agreed to give new credit and start drawing up a five-year cooperation plan between the two communist-run countries in accords signed Sunday during a visit by Chinese Vice President Xi Jinping.

The agreement on the refinery was the first official word on a project first reported by Reuters in November that is expected to cost $6 billion and would be a significant step forward in budding Cuba-Chinese economic relations.

The signing of the accords followed talks between Xi and Cuban President Raul Castro on Xi's second day in Cuba after arriving Saturday from Italy.

XI is widely expected to succeed Chinese President Hu Jintao in 2013.

Few details about the credit and other agreements were available.

China is Cuba's second largest trading partner, behind Venezuela, with trade last year totaling $1.83 billion, according to official Chinese news agency Xinhua.

The refinery letter of intent is an agreement among Cuvenpetrol, which is a joint venture between Cuba and Venezuela, China National Petroleum Corp's Huanqiu Contracting and Engineering unit and the Italian unit of French oilfield service company Technip to finalize a contract to expand and improve a Soviet era refinery in Cienfuegos on Cuba's southern coast.

The plan would expand the refinery's capacity to 150,000 barrels per day, from 65,000, and is a key part of Cuba's plans to develop its still untapped oil fields in the Gulf of Mexico.

A separate letter of intent between Cuvenpetrol and Huanqui calls for them to complete a contract to build a liquefied natural gas project that would include a regasifcation plant.

Reportedly, the plant would be built at or near the refinery.

China's Eximbank is expected to fund the refinery and LNG projects, with backing from Venezuelan oil.

China has become the lender of last resort for debt-ridden Cuba, which is carrying out reforms to modernize and strengthen its Soviet-style economy.

Last year, China restructured debt believed to be as high as $4 billion and agreed to extend new credit in what Havana-based diplomats said was a show of support for Cuba's reforms.

China increased its trade with Latin America by 50 percent in 2010, to $180 billion, Xinhua said.

Xi is scheduled to leave Cuba Tuesday and go on to Uruguay and Chile.

 

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Report: Hackers Stole Passwords to Access Sony's System

Thursday, 18 Dec 2014 19:41 PM

Sony's computer system was hacked by individuals who stole the computer passwords of a system administrator , giving the . . .

Joe Arpaio Disbands Immigration Enforcement Squad

Thursday, 18 Dec 2014 19:37 PM

An Arizona sheriff known for crackdowns on people living in the country illegally is giving up his last major foothold i . . .

NYT Names US Spy at Center of Cuba Prisoner Swap

Thursday, 18 Dec 2014 18:43 PM

The man President Barack Obama praised as one of the best spies for America in Cuba was released Wednesday in a prisoner . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved