Chinese chemical producer Hengli Group Co. Ltd has bought 1 million barrels of crude from Brazilian oil company Petrobras on the spot market to start up its oil refinery in the northeastern Chinese city of Dalian, Reuters reports.

The news agency says the new refinery can process 400,000 barrels of oil a day and is configured to refine medium and heavy crude from Brazil and Saudi Arabia.

Trial runs of the Dalian refinery will begin by October, Reuters says.

The news agency reported last month that Hengli Group had bought 2 million barrels of crude from Saudi Arabia.