On August 18, China's largest polypropylene?? project?? officially?? started?? operation?? in? Daqing, Heilongjiang Province, after 16 months of construction, according to the project's operator, the China National Petroleum Corporation (CNPC).

The project,? with a total investment of RMB 1.416 bln (USD 174.60 mln), has an annual? polypropylene? production? capacity? of 300,000 tons. The project? is expected to generate sales revenues of RMB 3 bln (USD 369.91 mln) per annum after going into operation.

The local? government? said? that the polypropylene project was aimed at providing a new economic stimulus to China's largest oilfield at Daqing, which is approaching the end of its lifespan.

The operators? are? planning? to reduce output at the oilfield gradually over the? coming? years. After producing over 50 mln tons of crude oil a year for? over? two decades, annual output fell to 48.4 mln tons in 2003 and 46.4 mln tons last year.

Daqing,? with? the? backing? of the central government's "Rejuvenate the Northeast"? campaign,? has? been? aiming? to? ease its dependence on the exploration?? and?? production?? of?? oil? by? boosting? its? downstream petrochemical industry.