Sinopec plant in Zhenhai eyes big role
Updated: 2016-09-20 09:11
By Lyu Chang(China Daily)
|
|||||||||
A worker handles an oil container at the Zhenhai refinery in Ningbo, Zhejiang province. The refinery plans big investments before 2018 in restructuring and upgrading its oil businesses.HU QINGMING/CHINA DAILY |
Refinery plans to invest 16.9 billion yuan before 2018 to restructure and upgrade its oil refining business
Zhenhai Refining& Chemical Co, Sinopec's largest refining unit, plans to build itself into a world-class crude processing base, as it benefits from the refining business amid the biggest crude price slump in a generation.
"If we want to play on a global stage, we should build ourselves into a world-class business. This means that we need a larger capacity for high-quality products," said Zhang Yuming, general manager of the Zhenhai refinery.
Located in Ningbo, Zhejiang province, the Zhenhai refinery is the most profitable company under Sinopec, the world's biggest refiner.
Last year, the company said its profit almost tripled compared with the previous year, but did not reveal further details about the figure.
Zhang said the company is expected to invest about 16.9 billion yuan ($2.53 billion) before 2018 in restructuring and upgrading its refined oil businesses.
The investment came as a slump in crude prices benefits fuel producers such as Sinopec.
Sinopec announced its first-half profit of 19.9 billion yuan, down 21.3 percent year-on-year, according to a recent filing to the Hong Kong Stock Exchange.
The other oil major PetroChina Co, the listed arm of China National PetroleumCorp, saw its net income drop to 531 million yuan in the first half, a 98 percent decline.
Lin Boqiang, director of the Center for Energy Economics Research at Xiamen University, said the downward trend in oil prices is likely to prevail for a while, so a bigger exposure to the refining business will put Sinopec in a good position to weather the losses caused by the worst turmoil in the oil industry.
Sinopec processed 115.9 million metric tons of crude into fuel in the first half of the year. That's roughly equal to almost 4.67 million barrels a day, according to Bloomberg calculations.
Sinopec will raise refining output in the second half of the year to 120 million tons, up 3.5 percent from the first six months, the company said.
Sinopec cut capital expenditure in the first half of the year by more than 40 percent from the same period in 2015 to 13.5 billion yuan.
Related Stories
Refining unit helps Sinopec profit 2016-08-30 09:23
Sinopec H1 profit declines 21.6% on weak oil prices 2016-08-29 10:31
Sinopec to sell 50% of its gas pipeline 2016-08-04 08:20
Sinopec promotes the joy of water 2016-06-02 07:48
Today's Top News
New York bombing suspect captured in New Jersey
United Russia party leads in parliamentary elections
Bomb suspect in custody in New Jersey: media reports
Oktoberfest parade held in Munich
New York to deploy 'bigger than ever' police presence
UK's anti-EU party elects new leader as Farage quits
Trump concedes Obama was born in US
Hong Kong SAR chief: Most back 'one country’
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Hollywood snaps up rock star's dog film |
Chinese people welcome dispossessed |
The can-do generation to the fore |
Riding the wave |
Leisure giants buoy cruise market |
She followed her heart |