The News Center of Qingdao Port reported，on August 22nd, the Company held ceremony of the oil transportation trial operation. With the valve turning on, the light crude oil weighted 285,000 tons from Oman transported to Weifang trough the pipeline. At this moment, Dongjiakou-Weifang-Central and Northern Shandong Oil Pipeline Construction Project（Phase I）(the 'Phase I Project') achieved operation formally. Mr. ZHANG,Jiangnan, the director of Business Department of the Company attended to the ceremony and gave a speech. Mr. LIU, Hongcai, the vice commander of the headquarters of Pipeline Construction, hosted the ceremony.
The Phase I Project was from Haiye Mercuria Oil Tanks Area in Dongjiakou Port Area to Binhai Final Station in Binhai New District, Weifang, whose length was 236km, laying two pipelines in the same ditch. The designed throughput of pipelines was 30 million tons. The total capital investment was 3 billion. The capability of storage in Weifang Tank Area was 1 million cubes. Since the project began to construct in last September, our staff overcame lots of difficulties, consisting of demolition, complexity of geological structure and 'Three Project of Cutting Across', spending nine months. On 29th June, 2017, the project achieved two pipelines to link up.
The project made a significant improvement of transporting oil in safety, environmental protection and economic efficiency. Specifically, the project brought more benefits of safety, because it achieved keeping constant temperature, whole sealing, decreasing the probability of overturn and overload through long-distance pipeline. Moreover, it brought more efficient of environmental protection, which reduced 7000 oil tank trucks used to transport oil in each day and reduced carbon dioxide emission by 1400 tons. Lastly, it reduced the cost of oil logistics by CNY 10-15 per ton, which means that it could reduce a total of 3 billion costs for all refiners in Shandong Province.