Sinochem Group became the fourth central enterpris

After seven years of hard work, Sinochem Group became the fourth central enterprise with a wholly-owned refinery

after PetroChina, Sinopec and CNOOC, Sinochem Group (hereinafter referred to as "Sinochem") became the fourth central enterprise with a wholly-owned refinery

it was learned from Sinochem yesterday that the national development and Reform Commission has officially approved Sinochem's 12million ton/year oil refining project in Quanzhou on August 20. After the completion of the project, it will become the first one in the middle reaches of the oil industry chain, and it can make the production nature uniform and stable; The by-products produced by the reaction are non-toxic or low toxic, a wholly-owned oil refining project. However, unlike several other central oil enterprises, the crude oil resources of the project will all rely on imports

it is worth noting that at a time when major refineries are losing money, Sinochem and several other oil majors are still competing to expand or build new oil refining projects. Industry insiders believe that oil majors are betting that policy losses will not last long, and that one day the refined oil market will open

filling the midstream of the industrial chain

opening up the whole oil industry chain is the goal that Sinochem has been pursuing in recent years. For Sinochem, the upstream and downstream of its oil industry chain have long been well laid out, except for the lack of fully independent refineries in the midstream

Quanzhou 12million ton/year oil refining project has been nearly 7 years since its preparation. Sinochem pointed out in its official draft that the project has been approved since October 2005; In September, 2006, Sinochem Quanzhou Petrochemical Co., Ltd. was established to take charge of the project

the main production units of the project include 19 sets of oil refining units, including 12million T/a atmospheric and vacuum distillation unit, 1.6 million T/a delayed coking unit, 2.6 million T/a residue hydrogenation unit, 2.4 million T/a catalytic cracking unit, with a total investment of 29.382 billion yuan

compared with other central oil enterprises such as PetroChina, Sinochem does not have oil and gas resources in China. Public information shows that by the end of 2011, Sinochem had obtained 23 oil and gas contract blocks in other countries, and the remaining recoverable reserves in the equity exceeded 400million barrels

therefore, the crude oil of Sinochem oil refining project has to rely on overseas. Liudeshu, President of the group, said during the national "two sessions" this year that the crude oil used in Quanzhou 12million ton/year refining project mainly comes from the Middle East, including Kuwait, which has signed a long-term oil supply cooperation agreement. The refinery project will be put into trial production at the end of June next year

in the downstream refined oil market, Sinochem and multinational oil giant Total established a joint venture as early as 2005 to sell refined oil products covering the economically developed regions of North China, South China and the Yangtze River Delta. It is understood that after the completion of the 12million ton/year oil refining project in Quanzhou, the oil sales will be mainly in the markets of South China and East China, and will radiate across the country

betting policy adjustment

in fact, although Sinochem did not have a wholly-owned refinery before, it has also made several investments in the refining and chemical field, including investing in the first Sino foreign joint venture refinery - Dalian West Taiping to ensure the normal use of experimental machines, Foreign Petrochemical Co., Ltd. and SINOCHEM Hongrun Petrochemical Co., Ltd., which holds a crude oil processing capacity of 5million tons/year. The new wholly-owned refinery shows its optimism for the oil refining business

in addition to Sinochem, PetroChina, Sinopec and CNOOC have plans to expand or build new refineries. Statistics show that China plans to build 13 new large-scale oil refining projects in the future. By 2020, the national oil refining overcapacity will reach 30million to 40million tons

however, the oil refining industry with rapid capacity expansion has fallen into widespread huge losses. According to the 2012 interim results released by CNPC recently, its refining loss in the first half of the year was 23.308 billion yuan, and Sinopec's refining loss was not small, so it should be tightened in time; Brokers expect Sinopec to lose 34.613 billion yuan in its oil refining business this year

in this regard, industry insiders believe that all refineries are betting on future policy adjustments, oil prices will be fully market-oriented, and policy losses will not continue, so they are keen on the oil refining industry

caienming, deputy director of the planning office of Sinopec Federation, said that the Chinese market is very large and broad. Several major oil companies feel that policy losses will not last long, and policy adjustments will happen sooner or later, so even if they lose money, they will still expand production capacity

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