China National Petroleum Corp (CNPC) and Russian state owned Rosneft will begin construction of the $5bn crude oil refinery in Tianjin, China, later this year.

The joint venture refinery is expected to generate annual revenues of $9.2bn.

The project located in the Nangang industrial zone, is expected to commence operations in 2015.

The 13-million-tonne per year (260,000 bpd) refinery is scheduled to supply fuel to the city of Beijing.

China plants to build a complete industrial chain from oil refining to petrochemical engineering in the Nangang industrial zone, reports Xinhua.