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Sinopec plans to import crude oil to supply Shandong's independent refineries for processing.
Sinopec plans to import crude oil to supply Shandong's independent refineries for processing. Previously, following repeated requests from Shandong's independent refineries and with strong promotion from the National Development and Reform Commission, Sinopec had just promised a certain amount of processing capacity.
Publish time：
2020-10-16
PetroChina plans to import crude oil to supply Shandong refineries for processing. Previously, after repeated requests from Shandong refineries and with the strong promotion of the National Development and Reform Commission, Sinopec had just promised a certain amount of processing capacity.
A Shandong refinery source revealed that PetroChina is entrusting them to process some of its oil share obtained from Sudan. Shandong refineries receive processing fees, while PetroChina obtains refined oil and other downstream product supply markets.
“Judging from the current situation, the domestic oil market may open up completely one day. However, the single-pass processing capacity of refineries under the group is generally not high, and the market share of refined oil is not large. Therefore, in addition to accelerating the expansion and transformation of existing refineries, acquiring existing refining capacity and entrusting processing are inevitable strategies for the group.” A senior PetroChina executive revealed: “Our goal is to have a refining capacity of 160 million tons by 2010, accounting for 40% of the domestic market.”
This time, many oil refining enterprises including Shandong Jingbo and Shandong Dongming obtained Sudanese crude oil. According to the different scales of these enterprises, the amount of oil refining obtained is different, and some can obtain more than 100,000 tons/month of crude oil.
This cooperation model is processing, that is, PetroChina provides a certain amount of crude oil to the cooperating party at a certain price, and the cooperating party processes it before PetroChina reclaims it at a pre-agreed price. Shandong refineries receive processing fees, while PetroChina obtains refined oil and other downstream product supply markets.
However, Shandong refineries processing Sudanese crude oil will face risks such as desulfurization costs and equipment corrosion.
“But the price this time is very attractive, only about 4600 yuan/ton, while PetroChina’s refined oil purchase price is higher than Sinopec’s 7000 yuan/ton.” The above-mentioned Shandong refinery source said, “We can get a net profit of 100 to 300 yuan/ton. In this market (referring to the inverted price of crude oil and refined oil), opportunities are rare.”
Previously, the crude oil price provided by Sinopec was mostly around 5400 yuan/ton, with a price difference of 700-800 yuan/ton from PetroChina, while the current arrival price of Russian fuel oil, the raw material usually used by Shandong refineries, is even as high as 5600 yuan/ton.
Keywords：
Petroleum,Corrosion
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