China’s Shenghong awaits govt approval for formal start of crude refinery
Chinese refinery Shenghong Petrochemical is ready to formally start running its 320,000 barrel-per-day crude distillation unit (CDU) and is waiting for the government to give the final go-ahead, a company official said on Wednesday.
The refinery, part of listed Jiangsu Eastern Shenghong Co , started trial operations of its refining units in May and has readied a new terminal to receive Very Large Crude Carriers (VLCC).
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“The CDU was tested and is ready to kick off production. Now we are waiting for government approval,” Sun Xin, director of Shenghong Petrochemical International, told Reuters on the sidelines of the 38th Asia Pacific Petroleum Conference (APPEC).
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There is no detailed schedule for official commencement, but the company is targetting to start formal operations in October, Sun said.
Located in the coastal Chinese province of Jiangsu, Shenghong is expected to supply refined fuel products mainly to eastern China, which would intensify supply competition in the region.
Sun said Shenghong will apply for export quotas for refined fuel products but added that it is hard to say if the company will receive any this year.
The market is expecting China to release up to 15 million tonnes worth of oil product export quotas for the rest of the year to shore up the faltering economy.
Source: Reuters (Reporting by Muyu Xu and Chen Aizhu; Editing by Jacqueline Wong)