China’s state-owned refineries cut Apr run rates to 81% on maintenance

China’s state-owned refineries cut Apr run rates to 81% on maintenance

The average run rate at China’s state-owned refiners Sinopec, PetroChina, Sinochem and China National Offshore Oil Corp. dropped for the second-straight month due to many refineries starting maintenance in April, a monthly survey by S&P Global Platts showed Monday.

A total of eight refineries have been undergoing maintenance in April compared with three in March, which helped drag down the overall run rate to around 81% in April, down from 82% in March. The run rate, however, was two percentage points higher than last year.

In January-April, the overall run rate at the state-owned refineries was steady on year at 81%.

The Platts April survey covered 39 refineries — 20 under Sinopec, 17 under PetroChina, CNOOC’s Huizhou refinery and Sinochem’s Quanzhou refinery. These refineries, with a combined capacity of 8.73 million b/d, had planned to process 7.1 million b/d of crude in April.

Five out of the 39 surveyed refineries, including three from PetroChina and two from Sinopec, have started maintenance in April.

PetroChina was the only one to have lowered run rates due to maintenance at several refineries in April. Sinopec’s run rates was unchanged from March, while CNOOC and Sinochem raised run rates slightly.

Among the 17 surveyed refineries under PetroChina, Wepec Petrochemical, Urumqi Petrochemical and Lanzhou Petrochemical had cut run rates significantly due to the upcoming scheduled maintenance. Meanwhile, Daqing Refining and Petrochemical, as well as Guangxi Petrochemical lifted their run rates each by 10 percentage points, offsetting the drop to some extent.

In other refineries, Sinopec’s Luoyang Petrochemical and Jinling Petrochemical entered maintenance from late April, while the other three refineries — Qilu Petrochemical, Fujian Refining and Petrochemical and Maoming Petrochemical — raised run rates throughout the month.

CNOOC’s Huizhou refinery raised run rates to around 58% in April, after restarting the 12 million mt/year phase 1 refinery after a two-month maintenance from around April 18.

Sinochem’s Quanzhou refinery lifted run rates by three percentage points to around 105%, up from around 102% in March, after touching a multi-month low of 100% in February.

SCHEDULED MAINTENANCE IN APRIL-JUNE

* CNOOC Huizhou restarted its 12 million mt/year phase 1 refinery after a two-month scheduled maintenance since February 18.

* Sinopec’s Qilu Petrochemical plans a partial maintenance from early-March for about a month.

* Sinopec’s Yangzi Petrochemical will shut its 6 million mt/year CDU and three secondary units for around 1-month maintenance from around March 21.

* Sinopec’s Jinling Petrochemical to shut a 8 million mt/year CDU and two secondary units for around a two-month maintenance from April 15.

* PetroChina’s Wepec refinery plans to start a 40-day maintenance over April 1-May 10.

* Sinopec’s Luoyang Petrochemical refinery plans to start a 55-day maintenance from April 20.

* PetroChina’s Urumqi Petrochemical refinery will be shut for a full turnaround over April 21-June 19.

* PetroChina’s Lanzhou Petrochemical plans to shut for around 55 days’ maintenance from April 25.

* Sinopec’s Qingdao Refining and Petrochemical will shut over May 10-July 24 for an overall turnaround.

* PetroChina’s Jinzhou Petrochemical will shut the entire refinery for maintenance over May-June for around two-month scheduled maintenance.

* PetroChina’s Liaoyang Petrochemical will shut the entire refinery for around 50 days over June-July for a scheduled maintenance.

* PetroChina’s Daqing Refining and Petrochemical will shut the entire refinery for around 45 days over August-mid September for a scheduled maintenance.

Source: https://www.spglobal.com/platts/en/market-insights/latest-news/oil/042219-chinas-state-owned-refineries-cut-apr-run-rates-to-81-on-maintenance

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