Page 7 - AsianOil Week 44 2020

AsianOil EAST ASIA AsianOil

foreign energy supplies, a thorn in the side The 41mn tonne (821,000 bpd) increase
of China’s energy planners. in 2021’s quotas should cover demand from
independent Zhejiang Petroleum & Chem-
Expanding quotas ical’s (ZPC) new 20mn tonne (400,000 bpd)
The MOFCOM said on November 2 that it would per year project in Zhejiang Province as well
offer up to 243mn tonnes (4.87mn bpd) of crude as independent Shenghong Petrochemical
oil import quotas for 2021 qualified non-state refin- Group’s new 16mn tpy (320,000 bpd) facil-
ers and trading companies. Interested parties have ity in Jiangsu Province, S&P Global Platts
until November 15 to submit their applications. quoted unnamed refinery sources as saying
The figure is around 20% higher than the on November 3.
ministry’s 2020 allocation of 202mn tonnes MOFCOM has said it will issue the first batch
(4.05mn bpd). MOFCOM has issued three of 2021’s quotas by December 31, adding that
rounds of 2020 quotas so far: 103.83mn tonnes only those companies that have imported crude
(2.08mn bpd) in December 2019, 53.88mn within the past two years will be considered. The
tonnes (1.08mn bpd) in April and another ministry has also said it will be flexible on vol-
26.84mn tonnes (538,000 bpd) in July. Of the ume requirements, raising the quota ceiling for
184.55mn tonnes (3.7mn bpd) of quotas issued companies with higher demand requirements
this year, independent refiners have reportedly and lowering it for those that find they do not
received 179.4mn tonnes (3.59mn bpd). need their original award volumes.™

Hengli doubles Dalian refinery’s oil storage

PROJECTS & INDEPENDENT Chinese refiner Hengli Pet-
COMPANIES rochemical has reportedly added 3.6mn cubic
metres (21.39mn barrels) of new crude oil stor-
age to its 400,000 barrel per day (bpd) down-
stream complex in Liaoning Province.
The addition boosts the storage capacity of
the refinery and petrochemical facility, which is
located on Changxing Island in Dalian City, to
6.8 mcm (42.77mn barrels), Reuters quoted an
unnamed company official as saying on Novem-
ber 4. The new capacity expansion will allow the
facility to hold up to 107 days’ worth of feedstock
requirements.
“The new tanks will allow us to further opti-
mise crude oil procurement and better manage
cost,” a spokesman said. He added: “We shall
increase our crude oil stockpile when oil prices Fellow independent Shenghong Petrochem-
dive to very low levels again in the future.” ical Group, meanwhile, is expected to bring its
Hengli built a total of 24 tanks between 16mn tonne per year (320,000 bpd) facility in
March and July, with each one capable of storing Jiangsu Province on stream in 2021.
150,000 cubic metres (943,500 barrels) of oil. The Work also started in late October on a new
newswire quoted another anonymous source refinery in Shandong Province, Reuters reported
as telling an industry event in October that the on October 28 citing local news reports. While
tanks had been brought online that month. the provincial government is backing the Yulong
The expansion adds to a wave of new capacity refinery project, which will consist of a 400,000
that is either coming online or is in the pipeline, bpd and 3mn tpy ethylene plant, investment is
with much of it being led by private investors. being led privately owned aluminium smelter
Independent Zhejiang Petroleum & Chem- Shandong Nanshan.
ical (ZPC) started trial runs at a 400,000 bpd Shandong Nanshan owns 71% of the project,
expansion of its refinery in Zhejiang Province while petrochemical producer Wanhua Chem-
on November 1, media outlet Argus reported on ical has 20% and the local government holds
November 2. The complex will be able to process the remainder. The first phase is scheduled for
800,000 bpd once the second phase, which con- completion in 2025, with several expansions
sists of two equal-sized crude distillation units slated to lift processing capacity to 800,000 bpd
(CDU), is brought on stream fully. by 2030.™

Week 44 05•November•2020 www. NEWSBASE .com P7