September 20, 2009 at 1:09 am #3002
Sinopec Tianjin to delay new refinery to Dec 2009
Reuters – Saturday, September 18, 2009
* Start-up of Tianjin refinery delayed to mid-Dec
* Fourth major new refinery on line in China this year
* Delay may help ease Asia oversupply of diesel
* Petchem complex, jv with SABIC, to start end of Dec
By Chen Aizhu
BEIJING, – Top Asian refinery Sinopec Corp has delayed the start up of its new 200,000 barrel-per-day refining plant in Tianjin to around mid-December or later, an industry official said on Friday.
The delay of the plant, the fourth major new facility to come online in China this year, could help ease the heavy surplus in Asian diesel market despite the approach of winter heating oil demand, partly due to heavy exports from China.
“Beijing wants to open as quickly as possible, but construction and equipment installations lag. Mid-December could be an optimistic target,” the official, who is familiar with the plant’s operations. told Reuters on Friday.
The plant, in the northern port city of Tianjin, was originally slated for start-up in September, the fourth new refinery this year after the launch of CNOOC Huizhou, Sinopec Fujian and PetroChina’s Dushanzi plant. The four plants have a combined capacity of 800,000 bpd.
State refineries in China, the world’s second-largest oil consumer, have been processing at near-record rates in recent months to capitalise on a fuel price mechanism that more or less guarantees a fixed profit margins, and as demand recovers with economic rebound.
Shielded by a tax incentive that gives rebates in exports, refiners shipped abroad excess barrels of diesel and gasoline, with diesel exports hitting a decade-high most of this year as domestic consumptions failed to keep in pace with record output.
The new Tianjin facility, designed to process crude oil from Saudi Arabia, is expected to process 3 million tonnes of Saudi oil in 2010, said the official, although a final supply amount will be decided upon the conclusion of yet-to-start term negotiations.
The refinery will also be looking at similar crude supplies from Kuwait, Iraq and Iran under term pacts, the official added.
An affiliated new ethylene complex of 1 million tonnes-per-year capacity, a $3 billion joint investment with Saudi Basic Industries Corp, will start about the end of December, he said.The Sinopec unit is currently operating a 110,000-bpd refinery at near-full rates, processing mostly low-sulphur crudes. (Reporting by Chen Aizhu; Editing
September 20, 2009 at 1:10 am #5999
Here is news update on 4th new refinery ( with coker) to come online this year,
but it looks like it will barely make it this year because it is now set for Mid-Dec startupd.
Sinopec Tianjin Refinery & Chemical Corp (TCCP) – 2 cokers (1995/2001 revamp & 2004 with new addition planned 2009) Dagang
(Sinopec has refineries/petchems at both Dagang & Tianjin. The Tianjin coker was constructed by SEI in 2002). Tianjin is one of the four municipalities directly under the Central Government in China, while Dagang is (Tianjin Dagang or Tian Jin Da Gang) a new coastal district in Tianjin on the Bohai Bay.
You must be logged in to reply to this topic.