The Republic of Chad has put an end to importing oil products, with the inauguration of its first refinery by Chadian President Idriss Deby. Located near Ndjamena, the country's capital, the refinery will process and transform the country's crude oil reserves into gasoline, kerosene, gas oil and other fuels.

Chad began producing oil in 2003 and has to date discovered 13 oil fields.

China has been at the forefront of making the refinery possible. "The refinery is the latest important cooperative project between the two countries," Chinese Foreign Ministry Spokesperson Hong Lei told a media briefing in Beijing on June 30, 2011, adding that it would help Chad turn its energy advantages into an impetus for economic and social development, and improve its capability to develop on its own.

Since China and Chad resumed diplomatic ties in 2006, Hong said bilateral relations have developed rapidly.  

The new refinery means economic development and to this extent Chad is proud of its relationship with China. President Deby expressed his joy at the historic occasion, on June 29, with a note of thanks. "Chad has won the battle for energy independence through the cooperation of the People's Republic of China, a gift of my friend President Hu Jintao. Long live China-Chad [cooperation]," said Deby.

The inauguration of the refinery comes two years and eight months after laying the foundation stone and four months after opening the oil field valves. The refinery is a dream that comes true for Chadians and has brought hope to a large section of the population. Chad has been 100 percent dependent on neighboring Cameroon and Nigeria for its petroleum products since October 2003.

Bilateral cooperation between Chad and China is benefiting both sides in the wake of the refinery opening. The cost of construction is estimated at almost $844 million. Chad has a 40 percent share of the consortium, with China National Petroleum Corp. (CNPC) holding the remaining 60 percent.

The refinery is designed to process 2.5 million tons of crude oil per year. Phase I project will have an annual processing capacity of 1 million tons, producing 700,000 tons of gasoline and diesel, 20,000 tons of kerosene, 25,000 tons of polypropylene, 60,000 tons of LPG and 40,000 tons of fuel oil. Its autonomous power plant can supply much needed electricity to the city of Ndjamena besides meeting the needs of the refinery, said the CNPC website.

Chad has previously been a small exporter of oil to China, with total supply in 2009 being a modest 140,000 tons, according to Reuters.

Chad Oil Minister Tabe Eugene N'gaoulamle said the implementation of the refinery of Ndjamena would ensure energy independence.

The Chinese Ambassador to Chad Yang Guangyu on his part responded to critics who accuse China of making a grab for Africa's raw resources.

"If only these people realize that only 13 percent of African oil goes to China, they will recognize that their accusations are unfounded and impartial. We never doubted the strength of our partnership based on mutual respect, equality, non-interference in the affairs of others and win-win cooperation," said Yang.

He called on both sides to take care of the refinery because its success will largely depend not only on the expansion of the partnership between China and Chad, but also the growth of the Chadian economy.

The crude oil will travel along a Chinese built 311-km pipeline from the oil field at the southern city of Bongor to the refinery at Ndjamena. A portion of the crude oil will be for export, prompting negotiations with the U.S. Exxon Mobil, which operates the Doba oil field to ascertain the feasibility of connecting these two oil fields, currently located approximately 400 km apart.

As the world demand picks up and construction and oil sector investment continues, overall growth rate of Chad's economy is expected to be 5.7 percent in 2011 and 6.9 percent in 2012, according to the AfricaneEconomicOutlook.org

(Reporting from Chad)