PetroChina to shut Nanchong base oil plant on feedstock shortage

05 November 2012 09:20  [Source: ICIS news]

SINGAPORE (ICIS)--China’s oil giant PetroChina plans to shut its 40,000 tonne/year Group I base oil plant at Nanchong in southwest China’s Sichuan province on Monday evening because of feedstock shortage, a company source said.

The shutdown is expected to last 20 days, and the company will continue to supply stocks during the period, the source said.

However, the company is not concerned about restarting the unit “as the margins are negative in base oils production,” the source added.

The shutdown is expected to pose limited impact on the local market in November as downstream demand from consumers in Sichuan province and Chongqing municipality is weak, market sources said.

The plant has been going on and off stream several times this year, most of which were because of a lack of feedstock supply, the sources added.

By: Whitney Shi
+65 6780 4359

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