05 February 2013 05:33 [Source: ICIS news]
SINGAPORE (ICIS)--Sinopec Jinan plans to shut its 150,000 tonne/year Group II base oil plant at Jinan in Shandong province on 15 March, because there will be a shortage of feedstock supply, a company source said on Tuesday.
The producer will take its 8m tonne/year crude distillation unit, which provides feedstock for the Group II base oil plant, at the same site off line in early March, the source added.
Sinopec Jinan will offer only a few volumes to the domestic market during the shutdown and expects to restart the base oil plant in mid-April, according to the source.
The plant shutdown will have minimal impact on the Group II base oil supply in the Shandong market, as the producer’s monthly supply to the spot market is just 2,000 tonnes, local traders said.
Furthermore, Shandong is well-supplied with domestic Group II volumes, according to the traders.
Sinopec Jinan has been producing on-spec Group II N150 and N500 base oils at the Jinan plant since November 2012.
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