Sinopec Imports 317,000 Tons of Refined Oil in November

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Researched by Industrial Info Resources (Sugar Land, Texas)--To alleviate China's refined oil shortage, China National Petroleum and Chemical Corporation (Sinopec) (Beijing) imported 317,000 tons of refined oil in November. Sinopec also planned to import about 316,000 tons of refined oil in December.

To ensure the supply of refined oil in China, Sinopec sought channels to import refined oil beginning in September. From September to November, Sinopec imported 468,000 tons of refined oil. Gasoline accounts for 90,000 tons of the import, and the rest was diesel. The injection of emergency foreign oil has effectively mitigated the “oil hunger” in China. In December, eight shipments of 316,000 tons of refined foreign oil will reach Chinese ports through Sinopec.

As a large state-owned petroleum enterprise, Sinopec places social and political responsibility at the top of its agenda and is taking steps to maintain maximum refined oil supply to the market, despite the fact that the Chinese state-regulated refined oil price does not cover the cost of production.

Sinopec's January diesel import plan is now set at an ambitious 500,000 tons. The company has already arranged for 75,000 tons.

It was reported that Sinopec has also signed a refining consignment contract with seven local refineries in Shandong Province. About 500,000 tons of crude oil will be consigned to these refineries. At the same time, Sinopec is arranging for the purchase of 300,000 tons of refined oil from local refineries to feed the empty pumps in China.

Because of the price hike of international crude oil and the reversed pricing of crude and refined oil in China, many smaller local refineries reduced their production volume because of insufficient crude oil resources.

The National Development and Reform Commission recently has repeatedly emphasized the importance of market stability and arranged for Sinopec and China National Petroleum Corporation to cooperate with smaller local refineries by consigning oil refining to them and purchasing their refined oil that is up to national quality standards.

Sinopec processed 140,000 tons more of crude oil than originally planned in November. Sinopec was scheduled to process about 14.5 million tons of crude oil in December, an 8.1% increase compared with the same period last year. In total, Sinopec was expected to process 42.38 million tons of crude oil in the last quarter of 2007, 380,000 tons more than planned.

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