News & Reports News Year 2011 October , 2011 Sinopec helps to ease shortage

Sinopec helps to ease shortage

SINOPEC, China's top oil refiner, plans to boost daily processing volume to the second-highest in history in November amid signs of tighter diesel supply in the domestic market.
The refiner has said it plans to process 18.3 million tons of crude oil next month, a rise of 2.8 percent from a year earlier.

That's 590,000 tons per day, second only to that in February when it increased refinery runs to help fight a severe drought in China.
A diesel shortage has been reported this month in Sichuan and Hubei provinces as private refiners reduced output after the government cut fuel prices earlier this month. Rising seasonal demand is considered another reason. But no shortfall has been reported in Shanghai so far.
Sinopec said it has increased daily fuel sales to 280,000 tons, its record high, so far this month to meet growing demand. It will also postpone planned maintenance in some refineries and reduce chemical feedstock output to ensure there's more capacity for diesel production.
State oil companies like Sinopec should assume a bigger responsibility in supplying privately-run gas stations, which account for 45 percent of China's total, as the domestic petroleum industry is dominated by these state giants, Lin Boqiang, an energy professor at Xiamen University, wrote in a note.

Last Updated (Wednesday, 26 October 2011 14:37)