PetroChina to restart Daqing Group II base oils unit in late Oct

15 October 2012 10:07  [Source: ICIS news]

SINGAPORE (ICIS)--China’s oil major PetroChina plans to restart its 200,000 tonne/year Group II base oils plant at Daqing in Heilongjiang province in late October, a company source said on Monday.

The company has shut the plant on 12 October for a three-week routine turnaround, the source said.

PetroChina, the sole Group II base oils producer in northeast China, largely produces N60/70 and N150 grades in Daqing city.

During the shutdown, Group II N150 base oils will continue to be supplied as the company had stocked up on the product before the shutdown, while N60/70 stock will be limited, the source added.

Supply of N60/70 base oils has been falling in northeast China amid increasing demand and low production, market sources said.

N60/70 prices are expected to firm in northeast China as the supply shortage will worsen during the shutdown, the sources added.

Group II base oils were traded flat from a week before at yuan (CNY) 9,100-9,900/tonne ($1,451-1,579/tonne) on 15 October in northeast China, traders said.

PetroChina was offering Group II N60/70 base oils at CNY9,800-9,900/tonne and N150 at CNY9,200/tonne on 15 October, according to the company source.

($1 = CNY6.27)

By: Whitney Shi
+65 6780 4359

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