September 4, 2008 at 11:39 am #3447
Thursday September 4, 11:19 AM
[size=+1]Haike restarts refining after crude dip
LONDON (ShareCast) – Shares in China-based petrochemical firm Haike rallied today after it announced the partial reopening of its oil refinery facilities following the recent dip in the crude price.
High oil costs and their failure to feed through to prices for refined products forced Haike to temporarily shut down its refinery operations in June. The company had anticipated that oil refining operations would resume during the financial year following an increase in the price of refined oil products.
Haike said the resumption of operations was due to ‘improved market conditions’.Oil prices have fallen close to $100 a barrel, having reached levels above $147 in July.
Haike, which is based in China’s Shandong province, produces diesel and other oil-related products, as well as speciality chemical and biochemical products.
September 4, 2008 at 11:40 am #6614
Update – here is very good news catch from a China Independent Refining (Petchem) Coker operation economic data point.
As most are aware only the China government refining companies like Sinopec & PetroChina receive subsidy (2004-2007 & now 2008 likely @ multi-billion dollars just keep them out bankruptcy due controlled / subsidized fuel price). The independent refinery/petchem complexes often have close – like Haike when crude price cost increased beyond certain levels since they also have sell fuel products below $0.90/gallon.
My best count has about 85 independent refinery/petchem plants in China and about 42-45 of these have coking units, with largest group located in Shandong province like Haike. Part of the problem verifying coking units has been the yo-yo up & down nature of these independents economics, the multiple name issues (can be named as refinery or chemical plant or plants name uses name of city or region interchangeably….really bad issue with concentration around Shandong of both Government & Independent refinery &/or Chemical complexes.
And of course the continued lack of mention of coking units or petcoke as product on general news items like this one is especially frustrating. Please advise if anyone has details on size/capacity of coking unit, type petcoke & quantity coke produced: I have Haike estimated at 1 mm mtpy (20MBD) coker charge, making a 2.5% Sulfur petcoke at ~250 mtpy. (less of course when like now as plant is operating at only partial capacity).
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