MOSCOW (MRC) -- China's daily crude oil throughput rebounded again in November as state refiners ramped up output to plug a diesel shortage and independent refiners also raised production on healthy margins, reported Reuters with reference to data showed on Wednesday.
Processing volumes in November were at 59.64 MM tons, data from the National Bureau of Statistics (NBS) showed, up 2.2% from the same period a year ago. November volumes were equivalent to 14.51 MMbpd, up from 13.75 MMbpd in October.
The year-to-date throughput rose 4.9% from a year earlier to 644.79 MM tons, or about 14.09 MMbpd.
Top refiner Sinopec has said it was processing at full rates in November and aimed to boost diesel production significantly through December to cover a diesel fuel shortfall which the refiner deemed temporary.
Independent plants in Shandong province raised plant utilization from October levels on elevated gasoline and diesel prices, according to Chinese consultancy JLC.
Mega private refiner Zhejiang Petrochemical Corp also ramped up processing in November after Beijing's release of fresh import quotas allowed the firm to bring in more crude shipments, said a company source.
China's year-on-year refinery output fell between July and October as Beijing clamped down on independent refiners by imposing crude oil import quotas and increasing scrutiny over tax payments.
Shandong province, a hub for independent oil refiners, has ordered its plants to self-inspect and self-rectify any irregular fuel tax practices, Reuters has reported.
Wednesday's data also showed China's crude oil output rose 2.7% to 16.31 MM tons in November versus a year ago, or by 3.97 MMbpd. That helped boost output in the first 11 months of 2021 by 2.5% from a year earlier.
As MRC informed before, earlier this month, Amur Gas Chemical Complex LLC agreed and signed loan documents to finance the completion of Amur GCC’s construction. Amur GCC will act as the borrower; SIBUR and Sinopec will be sponsors proportional to their stakes (60/40, respectively) in the joint venture (JV). Upon completion of standard conditions precedent, AGCC will begin to draw on the loan which will total USD USD9.1bn and has a final maturity of 2035. Project costs in excess of USD 9.1bn will be covered by the JV parties pro rata.
We remind that SIBUR and Sinopec closed the deal to create a JV based on Amur GCC in late December 2020. The capacity of the Amur GCC, as the future world's largest complex for the production of base polymers, will be 2.7 mln tons per year: 2.3 ml tons of polyethylene (PE) and 400,000 tons of polypropylene (PP). The complex's products will be represented by a wide range of grades. The construction of the complex is synchronized with the gradual reaching full capacity of Gazprom's Amur GPP. The approximate time frame for completion of construction and commissioning is 2024.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,047,100 tonnes in the first ten months of 2021, up by 17% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,226,530 tonnes in January-October 2021, up by 26% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding stat-copolymers of propylene (PP random copolymers) decreased significantly.
MRC