Page 9 - AsianOil Week 48 2021

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Chinese refinery numbers up

across public, private sectors

PERFORMANCE ON the refining and export fronts, China’s oil
woes seem to be fading – at least for now.
Reports in the last week have shown increased
run-rates at the nation’s state-owned and private
refineries as nationwide, China works towards
solving shortages and meeting domestic demand
caused by limited imports over the past month.
At the same time, rising numbers of exports
of some oil products seem to indicate there may
be light at the end of the tunnel for Beijing in sta-
bilising its oil industry.
The light started to appear when a number
of state-run refineries increased their November
run rates to an average of 82.6% on a demand
boost throughout November – an increase of 2%
after numbers hit a five-month low in October.
Data released by the refineries and the
National Bureau of Statistics has also shown Similarly positive numbers have also emerged
similarly positive moves north at the nation’s concerning China’s export ambitions, as much of
independent ‘teapot’ refineries. the rest of the world continues to be squeezed by
Combined, China’s four big names in oil limits in oil supply.
refining – CNOOC, PetroChina, Sinochem and As of December 2, gasoil exports are expected
Sinopec – processed 7.8mn barrels per day (bpd) to resume throughout the month, albeit at lower
of crude over the past month. than normal levels.
This is still well down on combined process- In the year to October, China’s General
ing capacity of just over 9.4mn bpd, but is up Administration of Customs (GAC) data showed
slightly on figures from October, when numbers gasoil exports to have reached an average of
peaked at just 7.67mn bpd. 1.64mn tonnes, but numbers are predicted
Stability in run rate numbers is anticipated to to remain in the region of 210,000 tonnes in
last throughout December and into early 2022, December.
even with a recent unexpected domestic decline Just a month ago, no gasoil was reported as
in gasoil demand. having been exported by Beijing, in a bid to first
Of the four state-run firms, Sinopec, as the help meet domestic demand.
world’s largest refiner, processed the lion’s share The export of gasoil this month has thus
of the total, with 4.376mn bpd passing through been attributed to refineries across the nation
its refineries; size notwithstanding, this was having effectively met domestic demand, with a
still something of a surprise given ongoing statement seemingly supporting this from Pet-
maintenance at several of the company’s refin- roChina’s Guangxi Petrochemical saying: “It has
eries, which have currently cut capacity by over become a bit difficult to sell out the barrels (on
600,000 bpd. the domestic front) towards December.”
This month Guangxi Petrochemical is plan-
ning on exporting 40,000 tonnes of gasoil.
Another refiner looking to export surplus
gasoil is Sinopec’s Zhenhai Refining and Chem-
ical, although figures have yet to be finalised.
Gasoline exports, meanwhile, are expected to
move past 1.1 million tonnes, almost twice the
figure posted just two months ago.
An estimated 400,000 tonnes of this total is
expected to come from Zhejiang Petroleum &
Chemical.
Reports from China say Sinochem too will up
the ante on recent forecasts to a total of 180,000
tonnes, despite issues with maintenance at one of
its key refineries, by taking advantage of a merger
with – and subsequent production by – state-
owned petrochemical processor ChemChina
earlier in the year.™

Week 48 03•December•2021 www. NEWSBASE .com P9