03 April 2013 10:49 [Source: ICIS news]
SINGAPORE (ICIS)--The operating rates of major Chinese refineries averaged 80.0% on Wednesday, down from 81.6% two weeks ago mainly because of more turnarounds, according to data from C1 Energy, an ICIS service in China.
Sinopec’s Qilu Petrochemical, which has a 280,000 bbl/day refinery, shut its 80,000 bbl/day crude distillation unit (CDU) and some secondary processing units in late March for turnarounds. This pulled down the refinery’s operating rate from 73% to 39% after the turnarounds.
Additionally, Sinopec lowered utilization rates at some other refineries to destock oil products. The 410,000 bbl/day Dalian refinery, the 160,000 bbl/day Jinan refinery and the 200,000 bbl/day Qinzhou refinery are still off line.
Other major refiners mostly had stable operating rates in the period.
The average refinery operating rate was compiled from 35 major Chinese refineries that have a combined capacity of 7.44m bbl/day. The combined capacity accounts for 70% of the total capacity of major refineries, according to C1 Energy.
Lower refinery operating rates tend to push up feedstock costs for China's chemical plants, which in turn may choose to reduce their own production.
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