China’s Sinopec to cut fuel exports, lower chemical plant operating rates
Chinese refiner Sinopec will reduce fuel exports and lower chemical plant operating rates in order to increase supply of domestic refined oil products, the company said on Tuesday.
“Sinopec will spare no efforts to increase refined oil products supply by cutting fuels exports, trimming chemical light oil and the operating rates of chemical plants,” China’s largest refiner said in a newsletter on its website.
"Though exporting oil products makes good profits, we have suspended exports to regions other than Hong Kong and Macau,” it added.
The company did not give a timeline or specifics regarding the plan.
In the first quarter (January-March) of 2011, Sinopec said its production of refined oil products was up 6.2 percent to 31.55 million metric tons compared with the same period of 2010.
Likewise, refineries ran at a 101% operating rate, with production of crude oil higher by 7.4 percent year on year.
Sinopec said it was continuing to run its refineries at full capacity in April, expecting to raise April output by 4% year on year to 10.54 million metric tons.
China’s use of oil products increased to record levels in March as driving increased amid warmer weather, the Wall Street Journal reported. Also, industrial use rose and agricultural demand surged due to the spring planting season, according to the report.
Comments