Sinopec
China Petroleum and Chemical Corporation ("Sinopec Corp."
or "the Company") is an integrated energy and chemical
Company with principal businesses of exploration, production
and trading of petroleum and natural gas, refining and sales
of petroleum products and production and sales of chemical
products. The major assets of the Company are mainly in
eastern and southern districts of China, which are enjoying
the fastest economic growth in China.
See more information about Sinopec
Sinopec to raise fuel exports
Sinopec Group (SH:601857), China's largest fuel producer, has told eight of its refineries to prepare to export fuel from March in response to the oversupplied domestic fuel market. The economic downturn has caused falling demand, with still more capacity about to come online.
China's state-owned oil refiners are likely to add nearly one million barrels per day (bpd) of new capacity by the end of the year. Some refineries are due to start running again after delays over the last year caused in part by tightening refining margins.
Faced with collapsing domestic demand growth, Sinopec and PetroChina (SH:600028) are seeking relaxed export curbs to increase production from new refineries, planned when fuel consumption was still growing rapidly.
The refineries that will begin fuel exports include its largest, Zhenhai in Zhejiang and second-largest Maoming in Guangzhou, as well as refineries in Hainan and Qingdao. The plants have annual crude capacity of around 100m tonnes, or 2m bpd. Until now, only the 160,000 bpd Hainan refinery has been a regular fuel exporter. Petrol and diesel exports in March are expected to increase to between 350,000 and 400,000 tonnes.
In January this year, petrol exports rose 243 percent from a year earlier, to 217,814 tonnes, while diesel exports surged 496 percent to 133,596 tonnes, as stockpiling reached record highs while domestic demand slumped.
Other Sinopec news
- Sinopec posts 333pct increase in H1 profit
2009-08-24 - Sinopec to buy Addax Petroleum for C$8.27 billion
2009-06-25
