Sinopec's Zhenhai Refinery Maintains Lead in Crude Oil Processing in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Petroleum & Chemical Corporation's (NYSE:SNP) (Sinopec) (Beijing) Zhenhai refinery, the most productive oil-refining facility in China, processed about 31,000 barrels per day (BBL/d) of crude oil in January. In 2008, the refinery processed nearly 415,000 BBL/d, up 4% year over year, to maintain the top position it secured in 2007. The refinery accounted for 11% of Sinopec's total crude oil processing volume of more than 3.8 million BBL/d.

In the first half of 2008, the market experienced a shortage in supply because of high crude oil prices and a price regulation in product oil. In the second half of the year, both crude oil and product oil experienced rapid declines, which caused unprecedented difficulties for the oil refinery. In order to ensure the supply of product oil in the market, the Zhenhai Refinery increased its processing volume, and in an effort to reduce production costs, it made structural adjustments and optimized the utilization of resources. Beginning in the fourth quarter, the refinery adjusted its production plans by controlling the output of products such as naphtha and arene while increasing the output of gasoline and diesel.

In 2008, the refinery's crude oil recovery rate increased 2.3 percentage points, and its output of liquefied gas and propylene reached 1.38 million metric tons, an increase of 9.11% year over year.

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