26 June 2012 08:24 [Source: ICIS news]
SINGAPORE (ICIS)--China National Offshore Oil Corp (CNOOC) has delayed the restart of its 400,000 tonne/year Group II base oil plant at Huizhou in Guangdong province to the first half of July, a company source said on Tuesday.
The company shut the plant on 12 May and was planning to resume production at the end of the month. The schedule was then delayed to late June, before being pushed to early July.
The restart was delayed for a second time because of insufficient feedstock supply and high inventory levels, due to weak downstream demand in China.
The company will switch to producing more Group II N100 and N220 base oils and reducing N150 output after the July restart, as the domestic market is oversupplied with N150, the source said.
However, the plant’s actual yield ratio will be finalised in accordance with market demand in July, the source added.
CNOOC’s Huizhou plant largely produces Group II N60 and N150 base oils, with the company quoting prices at yuan (CNY) 9,150/tonne ($1,439/tonne) EXW (ex-works) and CNY9,500/tonne on 25 June, respectively.
($1 = CNY6.36)
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