05 September 2013 09:30 [Source: ICIS news]
SINGAPORE (ICIS)--The operating rates of major Chinese refineries were at an average of 82.34% capacity on 5 September, up from 79.40% two weeks ago, according to data from C1 Energy, an ICIS service in China.
PetroChina restarted its 200,000 bbl/day Liaoyang refinery and operated it at a rate of 42% capacity after 40 days of turnaround, which started on 26 July.
Sinopec raised the run rate of its 280,000 bbl/day Yanshan refinery by 45 percentage points to 78% capacity after completing a turnaround at the unit in late August.
Sinopec Wuhan posted a higher operating rate at 96% capacity, as it increased the crude throughput at its 170,000 tonne/year refinery after bringing on stream an 800,000 tonne/year cracker on 13 August.
Additionally, several major refiners in southern China have raised the utilisation rates at their units, which pushed up the overall production rate at the region by 4 percentage points to 86% capacity.
However, these increases in production rates were partly offset by the shutdown of a combined refining capacity of 580,000 bbl/day at Daqing Refining & Chemical, Jinxi Petrochemical, Urumqi Petrochemical and Hainan Refining & Chemical.
Anqing Petrochemical started up a 100,000 bbl/day crude distillation unit (CDU) in early September, boosting its total refining capacity to 160,000 bbl/day. However, the run rate fell by seven percentage points to 82%, compared with two weeks ago, because the new CDU is still running at a low rate.
Other major refiners mainly posted stable operating rates at their units in the period.
The average 82.34% refinery operating rate was compiled from 35 major Chinese refineries with a combined capacity of 7.50m bbl/day. The combined capacity accounts for 71% of the total capacity of major refineries, according to C1 Energy.
Higher refinery operating rates tend to weigh on feedstock costs for China's chemical plants, which may lead to increased production at these plants.
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