MOSCOW (MRC) -- China’s crude oil throughput in November rose 10.1% from the same month a year earlier, to the second-highest on record, as refineries in the world’s no. 2 oil consumer ramped up production amid steady profit margins, according to Hydrocarbonprocessing.
Crude processing volumes reached 56.08 million tons, equivalent to about 13.65 million barrels per day (bpd), data released by the National Bureau of Statistics showed on Monday. That was a fraction below the record of 13.75 million bpd reached in September, and up from October’s 13.62 million bpd.
The robust throughput level came as China - the world’s top oil importer - brought in a record volume of imported crude last month at 11.13 million bpd.
Output was bolstered by new mega-refining complexes such as those of Hengli Petrochemical Co Ltd and Zhejiang Petroleum and Chemical Co, as well as higher runs at independent plants as they returned from maintenance outages.
"Margins have been supportive since October for independent plants, while state refiners also kept runs elevated as they moved more surplus barrels for exports where margins were also attractive," said Seng Yick Tee, senior director at consultancy SIA Energy, speaking before the data was released.
For the first 11 months of the year, crude throughput rose 6.7% from a year earlier to 593.18 million tons, or about 12.96 million bpd, the data showed.
The statistics bureau data also showed China’s domestic crude oil output in November edged up 0.9% from a year earlier at 15.70 million tons, or about 3.82 million bpd. In the first 11 months of 2019, crude output climbed 1.0% from a year prior to 174.95 million tons.
Meanwhile natural gas production jumped 8.0% in November from the same month a year earlier to 15.1 billion cubic meters (bcm) as Beijing pressed ahead with plans to boost domestic supply.
Gas output rose for the first 11 months of 2019 by 9.2% to 157.5 bcm as national producers focused on stepping up development of the fuel, including shale gas projects in southwest China.
Gas demand for the whole of 2019 was expected to rise 9% from 2018 to exceed 300 bcm, though consumption this winter is expanding at only half the rate recorded the previous year due to a slower gasification push.
As MRC reported previously, earlier this month, China’s Zhejiang Petroleum & Chemical Co Ltd launched a 3.8-million-ton-per-year reformer unit, a key processing facility at its new mega refinery and petrochemical complex in east China. The reformer unit, which processes naphtha into aromatics, is the world’s single-largest facility of its kind, the company claimed. Zhejiang Petrochemical,based in Zhoushan of Zhejiang province, started test runs at a 200,000-barrels-per-day crude oil refinery in May, the company said. The complex includes a second 200,000-bpd crude unit, a 1.4 million-tpy ethylene and a 4 million-tpy paraxylene plant. All facilites are expected to start operating next year, industry sources said.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
MRC