10,000kt/a Oil Refining Project at PetroChina Huabei to Finish

According to sources, the 10,000kt/a oil refining upgrading and rebuilding project at PetroChina Huabei Petrochemical Company is nearly finished, and this project will be put into operation in October 2018. Recently, SCI learns that all units at PetroChina Huabei Petrochemical Company are shut down in succession, and the daily LPG supply volume will obviously decline.

The 10,000kt/a oil refining upgrading and rebuilding project at PetroChina Huabei Petrochemical Company is a key project of the national petrochemical industry adjustment and revitalization plan. The total investment of the project is 10.059 billion RMB, and the overall progress has been completed 95.7%. It is planned to achieve high-level intermediate handover on June 30 and deliver the project to the production unit. After entering the production stage, the company's refining processing capacity will be increased from 5,000kt/a to 10,000kt/a. The hydrocracking unit and residual oil hydrogenation unit will be greatly improved, and so will the quality of oil products.

The oil refining units and the matched units at PetroChina Huabei Petrochemical Company have been shut down in early July, and it is predicted that these units will be shut down for over two months. Thus, SCI reckons that the LPG output will drop greatly.

As seen in the chart above, the daily LPG supply volume at PetroChina Huabei Petrochemical Company takes up 17.39% of the total, ranking second. Therefore, the overall LPG supply in North China will greatly shrink as the units at PetroChina Huabei Petrochemical Company are shut down. On the whole, SCI reckons that the LPG prices in North China will grow to some extent supported by the decline the LPG supply.