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Sinopec Luoyang plans to increase crude oil processing by 21% this year

March 13/2012
(bloomberg) -- China Petroleum & Chemical Corp., the nationís biggest refiner, plans to boost oil-processing volume at its Luoyang refinery by 21 percent this year.

The plant in the central Henan province will process 8 million metric tons of crude, up from 6.6 million tons in 2011, when the refinery was shut for 45 days for maintenance, said Wei Wenbo, president of the facility. He spoke today in Beijing at Chinaís annual parliamentary sessions.

The refinery, which has no maintenance scheduled until 2016, relies on imported crude from West and North Africa, the Middle East and South America for half its needs. The other half comes mainly from the western parts of China.
Luoyang lost USD10 on every barrel of oil it processed in 2011, resulting in an annual net loss of 2.6 billion yuan (USD410 million), Wei said. Refining losses were 2.9 billion yuan, while the plant had a profit of 300 million on petrochemicals. Sales were 46.8 billion yuan last year and may reach 52 billion yuan this year, he said.

"Under the current system in China, itís impossible to make profits from refining," Wei said. Luoyang also has "geographical disadvantages" because itís too far from oil supplies, he said, referring to Xinjiang fields to its west and oil ports on the eastern seaboard.

The Luoyang plant has crude-distillation capacity of 8 million tons a year and a splitter capable of processing 1.5 million tons of condensate annually, he said. The plantís refining costs are 200 yuan a ton more than the China Petroleumís average, Wei said, without being more specific.

Author:Anna Larionova
Tags:naphta, oil.
Category:General News
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