10 million tons of crude oil import index finalized

It is understood that China Chemical Industry Group has nine refineries with an annual processing capacity of 25 million tons of crude oil. Six of the refineries are located in Shandong. The three largest refineries are Huaxing Petrochemical, Changyi Petrochemical, and Zhenghe Petrochemical. It is 8.5 million tons/year, 8 million tons/year and 6.5 million tons/year.

Although China National Chemical Corporation is a central state-owned enterprise, its refinery located in Shandong is similar to other privately-owned refineries. It is in a shortage of raw materials all year round.

“China National Chemical Industry Group's refinery in Shandong has a low operating rate of 40% last year.” Chen Ching, an information analyst at Zhuo Chuang, told this reporter that after China National Chemical Corporation had 10 million tons of crude oil imports, it was very Most of it should be allocated to its refinery, which can alleviate the tightness of its refinery crude oil to some extent. At the same time, since the economic benefits of crude oil are higher than those of fuel oil, this 10 million-ton crude oil import index can also allow refineries to increase profits and mitigate losses.

Previously, the raw materials of the refinery of China National Chemical Corporation were mainly provided by CNOOC. According to statistics, China National Chemical Industry Group purchased more than 7 million tons of marine oil and imported fuel oil from CNOOC in 2012. CNOOC sold it to China Chemical Industry at a ratio of 1:0.75 for marine oil and imported fuel oil. In addition, China National Chemical Industry Group also purchases a large amount of South American heavy crude oil from the spot market every year. Since the beginning of 2013, its use accounted for 15% to 20% of its total processing volume.

Analysts believe that after China Chemical Industry Group has obtained the import quota of 10 million tons of crude oil, it will continue to purchase other raw materials through other channels. However, people familiar with the matter said that in 2013, CNOOC’s marine oil supply to China Chemical Industry may be halved, and it is expected to have only 2 million tons, while the quantity of imported fuel oil may still be maintained at 3 million tons. And, with the arrival of 10 million tons of imported crude oil, the number of heavy crude oil purchased by China Chemical Industry Group may also decrease slightly.

With this 10 million-ton crude oil import target, the total processing volume of China National Chemical Corporation in 2013 will likely double. According to the Axis Infosys Energy Report, Huaxing Petrochemical is expected to process 5.1 million tons of raw materials in 2013, Changyi Petrochemical will process 4.5 million to 4.7 million tons of raw materials, and Zhenghe Petrochemical expects to process 3.5 million tons of raw materials, in addition to two companies in Qingdao Anbang and Jinan. The refinery is expected to total 1 million tons, and the above refineries will process a total of 14.1 million to 14.3 million tons, an increase of about 80% from 2012.

"So according to the company's plan this year, the raw material demand of each refinery is very large, which depends heavily on 10 million tons of imported crude oil to support." Changyi Petrochemical refinery sources said.