Here is another update on the China Sinopec Maoming Refinery (& coker) expansion/doubling that now has approval from Sinopec ….. but is likely still target after 2010 (due cash flow & refinery overcapacity concerns mentioned in article). The 270 MBD crude refinery will nearly double to 510 MBD and get long overdue new Hydrocracker replacement / expansion (existing 16 MBD unit was damaged in April 2008 blast – see coking.com coker news post).
Also mentioned was recent news release about New CNOOC-Shell Huzihou Petrochemical/Refinery plant doubling – but
not sure why Reuters thinks CNOOC Huzihou refinery & coker haven’ started up (several other agencies confirm startup in Oct-Dec 2007)?
Sinopec Maoming used to produce low sulfur petcoke but now produce 5-6.0% Sulfur fuel coke (also change is occuring at other cokers like – Sinopec Gaoqiao & Quilu). Although not mentioned here the coker would also need to be expanded (last coker addition was in 2004 the enabled shift anode to fuel coke). A Fuel products P/L from Maoming Refinery was completed ~2004 that took a load off China Rail system (only ~3% China products move by P/L unlike Developed world where 80% move by P/L, most China products move by Rail and so does lot Crude supplies like barrels coming from Russia).
As mentioned in previous news update – it has been reported that China petcoke production will hit ~17million mtpy by
end 2008 from 65 -74 cokers ….(depending on how many of local private refineries are actually operating – they do not receive subsidy like Government owned refiners do but must still sell products at capped price under $1.0/gallon).
Over 70% of petcoke is consumed by China calciners for Aluminum industry but the amount of fuel coke is growing as more imports of heavy crude fill gap left by declining sweet domestic crudes. The majority of China’s 17-20 new cokers will produce fuel coke.