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Update China Maoming Refinery expansion(& Coker) after 2010

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This topic contains 3 replies, has 1 voice, and was last updated by  Charles Randall 12 years, 8 months ago.

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  • #3520

    Charles Randall
    Participant

    Sinopec Maoming’s expansion likely after 2010
    Reuters BEIJING, July 23, 2008 – The long-mooted plans by Sinopec Corp’s Maoming refinery to nearly double crude processing capacity may come only after 2010, a senior industry official said on Wednesday.
     Facing nearly a full year of refining losses under record crude and state-set fuel price caps, top Asian refiner Sinopec Corp is likely to proceed with more caution in adding new refining capacity, said the Beijing-based Sinopec advisor.
    The 270,000 barrel-per-day Maoming refinery, the country’s second-largest by output, plans to add in 2009 a new crude distillation unit of 240,000 bpd and other secondary units.
    The refinery said in an email statement that the expansion won the full support of the provincial government of Guangdong, China’s manufacturing hub and the largest oil consumer by province.
    But the expansion, estimated by one Maoming refinery official to cost some 4 billion yuan , has not yet won Sinopec’s approval, said the Sinopec advisor familiar with the state refiner’s expansion plans.
    The Guangdong region is short of fuel, but given the company’s tight cash flows this year, the expansion is unlikely to go ahead on the schedule the plant wishes,” said the advisor, who declined to be named.
    Sinopec warned investors last week that its first-half earnings could fall by more than half under soaring crude and state-capped fuel rates.
    Under Maoming’s expansion proposals, the plant, in Maoming city in western Guangdong, also plans to add a 48,000-bpd hydrocracker, a 36,000-bpd hydrotreating unit and a 400,000 tonne-per-year aromatics facility, the refinery said.
    It badly needs a new hydrocracker, a unit that strips sulphur and yields high-quality fuel, said the Maoming plant official, after its only hydrocracker — an aging 16,000-bpd facility– suffered damages in a blast in April.

  • #6700

    Charles Randall
    Participant

    Here is update on the China Sinopec Maoming Refinery (& coker) expansion/doubling that still lacks approval from Sinopec but is likely still targeted after 2010 (due fuel shortage in region). 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).
     
    Both Sinopec Maoming & Sinopec Gangzhou used to produce low sulfur petcoke but now produce 5-6.0% Sulfur fuel coke (also change is occuring at Sinopec Gaoqiao & Quilu cokers). Although not mentioned here the coker will also be expanded (last coker addition was in 2004 that enabled shift anode to fuel coke).  A 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).
     
    It has been reported that China petcoke production will hit 17 million 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. 
    Regards

  • #6627

    Charles Randall
    Participant

    Sinopec Maoming says wins approval to expand plant
    Reuters BEIJING, Thursday Aug 28, 2008  – Maoming refinery, Sinopec’s  second largest by output, said it won government approval earlier this month to expand crude capacity by nearly 90 percent, a refinery official said on Thursday.
     The 270,000 barrels-per-day plant will add a new distillation unit of 240,000 bpd and other secondary units that are estimated to cost 4-5 billion yuan , said Cai Zhan, an official in the plant’s public relations department.
    “When the upgrade would kick off or be completed or how much it would cost have not been finalised because there are still some detailed studies and designs that need to be done,” Cai said.
    Facing nearly a full year of refining losses under soaring crude costs and state-set fuel price caps, Sinopec  is likely to proceed with more caution in adding new refining capacity, a company advisor told Reuters last month.
    The top refiner in Asia incurred 46 billion yuan of refining loss in the first half of this year, versus a 5.7 billion yuan refining profit a year earlier.
    With heavy pressure on cash flow, Sinopec has decided to trim its 2008 investment plan by 8.5 billion yuan, including 8.2 billion yuan in capital expenditure, and company Chairman Su Shulin said on Tuesday the firm may cut or delay more projects if the cash flow position does not improve in the second half.
    Separately, top Chinese offshore oil firm CNOOC plans to expand its first major refinery even though the 240,000-bpd plant has yet to start operation, aiming to solidify its position in the world’s second-largest oil market.

  • #6626

    Charles Randall
    Participant

    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. 

     
    Regards

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