Sinopec to cut ethylene output by 65000 tons to raise oil supply

05-Jun-08

This month will see China Petrochemical Corp. (Sinopec), reducing ethylene output by 65,000 tons, and also reduce aromatic hydrocarbon production by 8%. This reduction in ethylene production will be substituted by an increase in oil supplies of almost 200,000 tons towards earthquake relief and reconstruction efforts, the summer grain harvest and the forthcoming Olympics. Sinopec will halt production or advance the scheduled maintenance turnaround at its Zhongyuan, Dongfang and Shanghai ethylene units, and also reduce production at other units. In Q2-08, almost 2 mln tons of oil will be imported and small local refiners will process 1.3 mln tons of crude. PetroChina, China's largest oil producer, plans a 7% increase in its diesel production in June month-on-month, and continue suspension of diesel exports that it suspended in September, to guarantee domestic supply.