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Zibo Xintai Shandong Petrochemical Co., Ltd. Sales Manager Hu told reporters that the company entered the maintenance and shutdown in February, it is possible to start production by the end of March.
According to reports, as of the end of February, nearly two-thirds of the company’s coking unit had been shut down for maintenance and repair in Shandong. In addition to Xintai Petrochemical, Jinan Bluestar Petrochemical Company, Shandong Haike Chemical Industry Group, Shandong Jincheng Petrochemical Group, Shanshan Tokyo Bo Petrochemical Company, Shandong Dongming Petrochemical Company, Shandong Zhonghai Petrochemical Company, and Shandong Wudi Xinyue Petrochemical Co., Ltd. ( 10 refinery plants, including Lubei Petrochemical, Binzhou Petrochemical Company, and Shandong Weifang Hongrun Petrochemical Co., Ltd., have all been suspended. The daily output of the 1 million-ton/year coking unit of Shandong Zhenghe Group is also declining.
This reporter learned that the shortage of oil sources is an important reason for enterprises to stop overhauls.
Shandong is the most concentrated province in the refining industry. Between 2006 and 2009, Shandong's refineries had 13 million to 14 million tons per year of atmospheric and vacuum decompression equipment. At present, Shandong's local refining industry has a total processing capacity of up to 4500 for 21 refineries. 10,000 tons/year. For geotechnical companies, fighting for oil from the big oil group is the most brutal competition.
Shandong Dongming Petrochemical Company, due to its cooperative relationship with CNPC, relied on CNPC’s oil sources, and the past days were relatively moist. However, in 2009, Dongming Petrochemical also had a revenue of only 200 million yuan. Crude oil is not very good, but now it is because of the failure to find oil.
It is understood that due to policies, the refining companies have very few crude oil targets and have no right to import crude oil. At present, when PetroChina and Sinopec enjoy a price of 1,970 yuan/ton imported crude oil, the local refining enterprises can only use 3,600 yuan/ton. The poorer quality of imported fuel oil is reprocessed.
According to analysis by industry insiders, the reason why the oil resources of the refining companies are tense is one of the most important reasons is that the production capacity has greatly increased. In recent years, Shandong refining companies have stepped up production. Li Xiangping, chairman of Shandong Dongming Petrochemical Co., Ltd., repeatedly stated that it would build Dongming Petrochemical into a large-scale refinery with a capacity of 10 million tons. In the second half of last year, Dongming Petrochemical signed an agreement with Huilian Group in Hong Kong for the construction of a new 5 million-tonne/year atmospheric decompression device. The Zhenghe Group's 5-million-ton annual decompression and the construction of a 5 million-ton/year heavy oil comprehensive utilization project of Hongrun Petrochemical Company are expected to enter the ranks of the 10 million-ton refinery.
In the case of apparent overcapacity of domestic refinery capacity, the refinery companies are still working on new projects, which is difficult to understand in the outside world. However, this is a frustrating move for enterprises. They said that there is no way out if there is no expansion, and there is even a danger of being eliminated.
This has led to greater concern. Industry sources said: “A large number of refinery production capacity is concentrated in Shandong Province. The production and demand of oil products in the province have been seriously misplaced. With the completion of new production capacity, the sluggish sales of oil products and low operating rate will hamper oil refining companies. ."
Faced with increasingly tight oil sources, some Shandong geotechnical companies are also seeking transformation, and many companies are targeting deep processing. The reporter saw from the “Key Projects for the Newly Launched Resettlement Plan of the Petrochemical Industry in Shandong Province†that some Shandong refineries want to start chlor-alkali, fertilizers, and fine chemicals. Among them, Shandong Haihua will add 160,000 tons of propylene oxide and 80,000 tons of polyether per year. Zhenghe Group, Lihuayi Group, Kenli Petrochemical Company, Fuhai Group, and other large Shandong refining companies also have plans for deep processing projects.
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Liu Aiying, president of the Shandong Refining and Chemical Industry Association, once told reporters that, in general, refineries must be maintained at minimum production levels, and they must not stop production until they have a last resort. Because once the production stops, the high cost of restarting the system cannot be sustained. However, most of Shandong's geotechnical companies that dare not stop production are now shutting down and overhauling, and when it is still unknown.