China: Sinopec spurs extra gasoline production to steer away from supply crunch

Chemical News: China: Sinopec spurs extra gasoline production to steer away from supply crunch

https://www.chemnet.com Mar 09,2011
Sinopec has recently informed underlying refineries to increase gasoline output and announced to give subsidies to those producing more than scheduled, according to refinery sources.

The oil giant hiked ex-refinery prices of 90-Ron, 93-Ron and 97-Ron gasoline beyond production plans by Yuan 730/mt, Yuan 770/mt and Yuan 800/mt, respectively, the sources said.

The move is expected to spur extra production and ease supply tension in the coming few weeks, market sources believed.

As C1 reported earlier, gasoline supply crunch might occur amid spiraling international crude prices, thin gasoline blending margins and less supply from independent refineries.

Most refineries affiliated to Sinopec would run at high rates in March, total crude throughput of which would slip around 3% on month, C1's data showed.

Jingmen Petrochemical's 3.5-mil-mt/yr crude distillate unit, Guangzhou Petrochemical's 5.2-mil-mt/yr CDU and some secondary units of Maoming Petrochemical would be in turnarounds in March.

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