CHINA DATA: State-run refinery crude cycle peaks in four months at 82% in June
The average utilization rate of China’s four state-owned refineries rose two percentage points on the month to a four-month high of 82.4 percent in June, from 80 percent in May and 76 percent in April, so that more refineries have resumed scheduled maintenance. , S&P Global Platts data was released on June 25.
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As a result, the country’s crude throughputs are expected to rise further from May’s record high. China processed 14.31 million bpd or 60.5 million tonnes of crude in May, according to data from the National Bureau of Statistics.
Around 38 million t / year of refining capacity was put back into service between the end of May and the beginning of June in five refineries under Sinopec and PetroChina.
Several refining sources with Sinopec have also increased throughput thanks to good refining margins and higher crude prices.
The Chinese government has set the country’s retail gasoline and diesel prices to move with international crude prices.
The price of ICE Brent closed at $ 75.38 / bbl in London on June 24, up $ 4.98 / bbl from $ 70.40 / bbl on June 1.
“We have increased production rates to around 101% in order to take advantage of good margins,” said a source at Sinopec’s flagship refinery in eastern China.
However, sales of petroleum products, especially diesel, slowed in late June due to high throughput and reduced exports of petroleum products, many refiners said with Sinopec on June 24.
Chinese refiners were to reduce their exports of petroleum products in response to the government’s plan to reduce the export quota, Platts reported earlier.
“We will keep exports of petroleum products to a minimum for the rest of the year,” said a source at Sinopec Guangzhou, which reduced its total exports of petroleum products to 34,400 t in June, from around 133,000 t in the month. previous.
Two refineries will restart a combined capacity of 20 million tonnes per year in mid-July after maintenance, and no new capacity will be taken offline during the month, which will likely help increase crude throughputs from June, market sources said.
Sinopec increases its execution rates
The four state-run oil majors – Sinopec, PetroChina, CNOOC and Sinochem – plan to process a total of 7.6 million b / d of crude in June against their nominal capacity of 9.24 million b / d.
By comparison, their May debit plan was 7.47 million bpd.
Sinopec had increased crude throughputs with several refineries restarted after maintenance, and average run rates were increased to a four-month high of 85.5% in June., against 82% in April.
Meanwhile, execution rates at PetroChina remained stable at around 74.4% in June, despite the closure of Jilin Petrochemical for maintenance since the beginning of the month. The loss of throughput at Jilin was offset by the restart of Fushun Petrochemical and Dagang Petrochemical.
CNOOC and Sinochem continued to maintain high throughputs at their respective refineries with good refining margins, according to sources.
Platts data covered 41 company-owned refineries reported in June, up from 42 in May. These included 22 Sinopec refineries, 17 PetroChina refineries, CNOOC’s Huizhou Petrochemical refinery and Sinochem’s Quanzhou Petrochemical refinery.
The 22 Sinopec refineries covered by Platts have a combined capacity of 5 million b / d, representing 83.6% of the refining giant’s total capacity of 5.98 million b / d. Meanwhile, data collected by Platts for PetroChina’s refineries has a combined capacity of 3.49 million b / d, representing 85.3% of the company’s total capacity of 4.09 million b / d.
Hengli Petrochemical’s 20 million t / year (Dalian) in northeast China kept execution rates relatively stable at around 106% in June, up from 108% in May. The refinery utilization rate has hovered around 107% over the past 12 months.
Operating rates for Zhejiang Petroleum & Chemical’s three 10 million ton / year crude distillation units stood at 85% in June, stable since April. The refinery planned to start its second 10 million t / year CDU as part of its 20 million t / year phase 2 project in June, which could be delayed as the additional quotas for phase 2 do not have not yet been allocated.
In addition, weekly turnover rates at 43 independent small-scale refineries in eastern Shandong Province were around 71.7 percent as of June 23, down from 73.3 percent the previous week. In addition to a few independent refineries closed for maintenance, Hengyuan Petrochemical and Fuyu Petrochemical will also dismantle their CDUs in order to transfer capacity to the new Yulong project.
State refinery maintenance schedules
* Sinopec’s Yanshan Petrochemical restarted an 8 million t / year CDU and associated secondary units after scheduled maintenance in mid-May.
* PetroChina’s Fushun Petrochemical restarted around May 16 after 45 days of maintenance starting around April 1.
* Sinopec’s Jiujiang Petrochemical restarted around May 17 after scheduled maintenance from April 1.
* PetroChina’s Dagang Petrochemical had restarted at the end of May after scheduled maintenance which began on April 10.
* Sinopec’s Shanghai petrochemicals restarted around June 11 after partial maintenance scheduled from April.
* Jilin Petrochemical of PetroChina had closed the entire refinery for maintenance from June 1 to July 19.
* Sinopec’s Cangzhou petrochemical plant has been in maintenance since May 10, to last until June 30.
* Sinopec’s Maoming Petrochemical closed a 10 million tonne / year CDU for maintenance from June 10 until mid-July.
* Sinopec’s Qilu Petrochemical will shut down a 4 million ton / year CDU for maintenance from mid-August to the end of September.
* Sinopec’s Shijiazhuang petrochemical plant will be closed for general maintenance from the end of August to the end of October.
* Sinopec’s Guangzhou Petrochemical will close an 8 million t / year CDU for maintenance from mid-October to the end of November.
* Sinopec’s Gaoqiao Petrochemical will shut down the entire refinery for maintenance from October 10 to early December.
* Fujian Refining & Petrochemical of Sinopec will close a 4 million t / year CDU for maintenance from mid-October to mid-November.
Average execution rates at major refiners in China
N / A
Independent from Shandong
Source: S&P Global Platts