PetroChina Co Ltd<601857><857><PTR>, the country's largest oil and gas producer, is reportedly planning to set up a refinery with daily processing capacity of 200,800 barrels in southwest China's Chongqing Municipality, sources reported, citing a local newspaper report.

According to an official with the Changshou Chemical Zone in Chongqing, PetroChina has completed the feasibility study and environmental research of the project.

The project now awaits for the approval from the State Council, said the official, adding that the new project is also expected to boost the automobile, textile and steel industry in the zone.

Earlier this year, PetroChina was approved to build an oil refinery with annual processing capacity of 10 million tons in northeastern Liaoning province.

(China Knowledge, Nov 20, 2008)