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China starts rebuilding oil stockpiles in early 2021

April 15/2021

MOSCOW (MRC) -- China resumed storing crude oil in the first two months of the year with almost 1MM bpd being added to inventories in January and February, rebuilding stockpiles after a rare drawdown toward the end of last year, reported Reuters.

About 920,000 bpd were directed to inventories in the first two months of the year, according to calculations based on official data.

The build in inventories comes as refineries make use of new import permits for 2021, after the coronavirus pandemic and a dispute between exporters caused widespread market ructions last year. China doesn't disclose the volumes of crude flowing into strategic and commercial stockpiles. But an estimate can be made by deducting the amount of crude processed from the total amount of crude available from imports and domestic output.

Refinery throughput was 114.24 million tons in the January-February period, equivalent to about 14.13 million bpd, according to data released on Monday by the National Bureau of Statistics. This was about the same level as in December, but was up from 12.07 million bpd in the first two months of 2020, reflecting the additional refining capacity China added last year.

Domestic crude oil output was 32.08 million tons in the first two months of 2021, equivalent to about 3.89 million bpd, a gain of 0.4% from the corresponding period a year earlier. Imports for the first two months were 89.57 million tons, about 11.08 million bpd, according to customs data.

Putting imports and domestic output together gives a total of about 15.05 million bpd available to refiners in the January-February period. Given that processing was 14.13 million bpd, this leaves a gap of about 920,000 bpd that flowed into commercial and strategic stockpiles.

As MRC write previously, Russia expects the fallout from the COVID-19 pandemic on the global consumption of oil and oil products may last until 2023-2024, a draft government document, seen by Reuters, showed. The global oil and liquid fuels production dropped in 2020 to 94.25 million barrels per day (bpd) from 100.61 million bpd in 2019, amid the pandemic, which led to lockdowns, halting 80% of air traffic and a quarter of road traffic at its peak and denting fuel consumption.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegazs existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, LDPE, HDPE, ethylene, petrochemistry, Gazprom neft, Sibur Holding, Shurtans Gas-Chemical Plant, China, Russia, Uzbekistan.
Category:General News
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