Sinopec Qingjiang Produced Ethanol Gasoline

On June 14, 2018, the gasoline and diesel quality upgrade project at Sinopec Qingjiang Petrochemical Company passed the acceptance check by the expert group and was transferred to formal production, becoming a company that specially produces GB V ethanol gasoline.

According to SCI’s statistics, China’s gasoline apparent consumption volume in 2017 reached 120,000kt, but China’s fuel ethanol apparent consumption volume was 2,800kt. Calculated as the 10% of ethanol adding proportion, the supply shortage of fuel ethanol will reach 9,000kt when ethanol gasoline is promoted nationwide.

With regard to the future marketization of fuel ethanol, most market participants believe that the overall industry may still be in the national regulatory status and will not achieve full marketization in the short term. Because once ethanol gasoline is promoted, fuel ethanol is expected to enter the energy industry. And it is impossible to achieve complete competition in the short term. China’s future approval or issuance of fuel ethanol qualifications cannot completely eliminate the threshold. Some existing state-owned or joint-stock companies already have certain advantages and experience in the supply of fuel ethanol, and they will maintain this leading position in the future. In addition, some other powerful private enterprises will also be given priority.