Big names such as CNOOC and Sinopec are building up oil production and storage business in east China's Fujian province.
Chinese chemical conglomerate Sinochem Group has spent 17.7 billion yuan (2.02 billion) to build facilities capable of deep processing 5 million tonnes of heavy oil a year. The project is expected to be completed in 2011.
Sinochem will continue to expand the facilities and build oil storage units capable of processing 12 million tonnes of oil every year.
China's largest offshore oil producer CNOOC has invested 15 billion yuan in the province, with the money going to projects such as liquefied natural gas (LNG) receiving stations, natural gas networks and LNG cold energy projects.
Another state company, Sinopec, has decided to invest 24 billion yuan on the second phase of an oil refinery project, designed to be capable to refine 12 million tonnes of oil annually. Before that, China's largest oil refiner completed the first phase of the project.
Fujian province has improved its infrastructure in recent years, investing more than 100 billion yuan on roads, highways and ports. With Fujian's many ports, the province has some advantage in developing heavy chemical industry near its ports.