Top Banner
Evolution of Chinese Independent Refineries http://intl.sci99.com/ EVOLUTION OF CHINESE INDEPENDENT REFINERIES James Gao Industry Analyst SCI International Business Unit
41

EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Aug 12, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

EVOLUTION OF CHINESE INDEPENDENT REFINERIES

James GaoIndustry AnalystSCI International Business Unit

Page 2: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Excellence Creates Miracle

SCI Branches

Missouri

Shanghai

Shandong

Xiamen

1

Page 3: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

http://intl.sci99.com/

Ministries and commissions, such as National Development and Reform Commission (NDRC) and National Bureau ofStatistics of China (NBS), have established in-depth cooperation with SCI, in fields of price monitoring, data cooperation,macro-control, industrial restructuring and supply-side reform, etc. Over 500 media, including the Xinhua News Agency,CCTV, PR Newswire, take SCI as their information source.

Clients cover industry players, financial institutions, commodityexchanges, government agencies, media and scientific researchinstitutions, etc., among which 287 are among the world top 500enterprises.

Excellence Creates Miracle

WORKING PARTNERSHIP

About 3,500,000 registered users

PR Newswire

The Wall Street Journal

2

Evolution of Chinese Independent Refineries

Page 4: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

http://intl.sci99.com/

Excellence Creates Miracle

SERVICE SYSTEM

3

Page 5: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Evolution of Chinese Independent Refineries

4

Page 6: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

History and Current Situation of Shandong Independent Refineries

1960–1999Birth & Breaking Through

2015–PresentImport & Export Policies

2000–2010Tough Reform & Rise

2011–2014From Disordered to Well-Organized

13,124,760 bbl/a

212,265,189

2,736,477

40,000

540,000

1,040,000

1,540,000

2,040,000

2,540,000

3,040,000

2012 2013 2014 2015 2016

bbl/day 2012–2016 Shandong Independent Refineries’ Capacity

5

Sinopec, 37%

PetroChina, 27%

CNOOC, 5%ChemChina

, 3%

Sinochem Quanzhou

Petrochemical , 2%

China North

Industries Group, 1%

Shandong Independent

Refineries, 17%

Other Independent Refineries, 8%

Others, 25%

2016 Chinese Oil Refining Capacity Structure

Page 7: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Independent Refineries’ Refined Oil Products Output

2012–2016 Gasoline and Diesel Output Comparison between Shandong Independent Refineries and Chinese Refineries

Shandong independent refineries’ gasoline and diesel output is increasing. The output reached 473.44 million barrels in 2016, covering 19.38% of China’s gasoline and diesel output.

History and Current Situation of Shandong Independent Refineries

6

2012–2016 Shandong Independent Refineries’ Gasoline and Diesel Output

19.38%

10%

12%

14%

16%

18%

20%

0

500

1,000

1,500

2,000

2,500

3,000

2012 2013 2014 2015 2016

million bbl

Shandong independent refineries' output

Chinese output

Shandong independent refineries' proportion

197

302

0

50

100

150

200

250

300

350

2012 2013 2014 2015 2016

million bbl

Gasoline Diesel

Page 8: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Content

Content

Previous Issues

— Insufficient Crude Oil & Product Quality Upgrade

1

Current Situation

— Three Rights Obtainment & Status Promotion

2

Current Issues

— Challenges & Opportunities3

Chinese Independent Refineries’ Future

— New Start of Independent Refineries

4

7

Page 9: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

1PART ONE

Chinese Independent Refineries’ Previous Issues

— Insufficient Crude Oil & Product Quality Upgrade

8

Page 10: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Chinese Independent Refineries’ Previous Issues

$35/bbl

2015/11994 2005/9 2006/4 2008/1 2009/1 2014/11 2014/12

0.03

0.10.2

0.8

0.94

11.1

1.121.2

1.4

1.52

RMB/L Gasoline Diesel Fuel oil

Insufficient crude could be refined was the biggest bottleneck, and the consumption taxworsened the fuel oil refining .

2009 Shandong Independent Refineries’ Feedstock Structure

Fuel oil

57%

Crude oil

43%

2009

9

Chinese Consumption Tax of Oil Products

Page 11: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

The upgrade of Chinese gasoline and diesel national standards made the refining difficulty double for inferior feedstock.

ESPOM100

1.54% 1.52% 1.5%

0.6%

Merey crude oil

Shenglioil

S content comparison

GB III

GB IV

GB V

Sulphur content limit

Chinese Independent Refineries’ Previous Issues

10

Page 12: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

1 3 52 4

EnvironmentalProtection Pressure

Loan Difficulty

Low Brand Recognition

Tax Pressure

ProductHomogeneity

Chinese Independent Refineries’ Previous Issues

11

Page 13: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Suppressed by feedstock and policies, independent refineries were sold and eliminated.

Crude oil

&Policy

oppressionAcquisition Exchange

Chinese Independent Refineries’ Previous Issues

Elimination

12

Page 14: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Content

Content

13

Previous Issues

— Insufficient Crude Oil & Product Quality Upgrade

1

Current Situation

— Three Rights Obtainment & Status Promotion

2

Current Issues

— Challenges & Opportunities3

Chinese Independent Refineries’ Future

— New Start of Independent Refineries

4

Page 15: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

2PART TWO

Chinese Independent Refineries’ Current Situation

— Three Rights Obtainment & Status Promotion

14

Page 16: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Chinese Independent Refineries’ Current Situation

Crude oil policy loosening is in favor with the general public and also a transformation of state attitude.

Crude oil

77.18%

Others

22.82%

Fuel OilBitumen mixture

2015 Raw Material Structure of Shandong Independent Refineries

53%

58%

62%

70%

77%

20

11

-2

01

5

15

2011–2015 Crude Oil Proportion in Shandong Independent Refineries’ Raw Materials

Page 17: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Chinese Independent Refineries’ Current Situation

Independent refineries’ operating rate increased greatly, backed by the sufficient supply ofcrude oil.

16

26.04%

64.40%

20%

30%

40%

50%

60%

70%

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

2012-2016 Shandong Independent Refineries' Operating Rate

Page 18: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Independent refineries are becoming more and more competitive, through capacity expansion.

Chinese Independent Refineries’ Current Situation

Top 10 Shandong Independent RefineriesUnit: bbl/day

Ranking Region Refinery Capacity1 Weifang Changyi Petrochemical 160,438.362 Heze Dongming Petrochemical 150,410.963 Dongying Huaxing Petrochemical 140,383.564 Dongying Hualian Petrochemical 124,339.735 Zibo Huifeng Petrochemical 116,317.816 Dongying Wantong Petrochemical 116,317.817 Weifang Hongrun Petrochemical 114,312.338 Dezhou Hengyuan Petrochemical 110,301.379 Dongying Tianhong Chemical 100,273.97

10 BinzhouChina Offshore Bitumen (Binzhou)

100,273.97

17

445,417

1,455,015

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2012 2013 2014 2015 2016

bbl/day

2012–2016 Shandong Independent Refineries’ Crude Oil Processing Volume

Page 19: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Main types of imported crude oil that independent refineries are processing

Chinese Independent Refineries’ Current Situation

Refinery Crude TypeDongming Petrochemical Oman, Mandji, MereyLijin Petrochemical Oman, Cinta, offshore oil, Shengli oilKenli Petrochemical ESPO, Cinta, offshore oil, Shengli oilYatong Petrochemical Oman, Duri, Urals, offshore oil, Shengli oilHongrun Petrochemical ESPO, KuwaitHuifeng Petrochemical Oman, Escolante, VasconiaTianhong Chemical Oman, Cinta, Songkhla, offshore oil, Shengli oilChambroad Petrochemicals Arabian HeavyLuqing Petrochemical ESPO, OmanQirun Chemical Oman, Escolante, Mezcla,Haiyou Petrochemical Sadun, EscolanteHengyuan Petrochemical West African oil, offshore oilQingyuan Petrochemical offshore oil, DjenoShenchi Chemical offshore oil, Shengli oil

18

Oman, 32%

ESPO, 20%

Duri,12%

Others, 36%

Imported Crude Oil Types

Page 20: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Crude oil demand is increasing, and more independent refineries are applying for quotas.

1 2 3

Chinese Independent Refineries’ Current Situation

Refinery 2017 1st Batch 2016Dongming Petrochemical 48,092,400 54,900,000 Panjin North Asphalt 41,504,400 51,240,000 Hongrun Petrochemical 37,258,800 38,796,000 Lijin Petrochemical 22,838,400 25,620,000 Kenli Petrochemical 16,396,800 18,446,400 Baota Petrochemical 3,367,200 45,091,200 Yatong Petrochemical 14,713,200 20,203,200 Huifeng Petrochemical 12,224,400 30,451,200 Luqing Petrochemical 15,957,600 18,885,600 Tianhong Chemical 27,450,000 32,208,000 Chambroad Petrochemicals 5,709,600 24,229,200 Qirun Chemical 15,225,600 16,104,000 Haiyou Petrochemical 3,147,600 23,424,000 Hengyuan Petrochemical 12,810,000 25,620,000 Wudi Xinyue Chemical 8,784,000 17,568,000 Qingyuan Petrochemical 14,786,400 29,572,800 Shenchi Chemical 9,223,200 18,446,400 Jincheng Petrochemical 10,980,000 21,960,000 Xinhai Chemical 13,615,200 27,230,400 Total 334,084,800 539,996,400

Unit: bbl

19

Page 21: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Refined oil products export is a new beginning.The export volume will increase, but the increase will be limited.

Chinese Independent Refineries’ Current Situation

20

1,019

1,255

0

200

400

600

800

1,000

1,200

1,400

2012 2013 2014 2015 2016

million bbl

2012–2016 Chinese Gasoline and Diesel Apparent Consumption Volume

Gasoline Diesel

50

82

55

117

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016

million bbl2012–2016 Chinese Gasoline and Diesel Export Volume

Gasoline Diesel

Page 22: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Sufficient Crude Oil

Chinese Independent Refineries’ Current Situation

Operating Rates Increasing

Capacity Expanding

Industrial Position Improving

21

Page 23: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Content

Content

22

Previous Issues

— Insufficient Crude Oil & Product Quality Upgrade

1

Current Situation

— Three Rights Obtainment & Status Promotion

2

Current Issues

— Challenges & Opportunities3

Chinese Independent Refineries’ Future

— New Start of Independent Refineries

4

Page 24: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

3PART THREE

Chinese Independent Refineries’ Current Issues

— Challenges & Opportunities

23

Page 25: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Chinese Independent Refineries’ Current Issues

Despite the benefit of crude oil policy, independent refineries still face problems.

Will new crude oil be suitable for independent refineries’ units?

Production

How can the crude oil be imported, curbed by low transportation capability?

Infrastructure

How will independent refineries reduce risks, with no crude oil import experience?

Procurement

How will independent refineries sell their products, considering severe oversupply?

Marketing

24

Page 26: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Simplify the crude oil purchasing process, and try to raise their international position.

How to purchase the crude oil

7 applying refineries

7refineries with imported crude oil use right

5refineries with imported crude oil use right and imported crude oil qualification

Lack of bargain power

Disordered bidding procurement

Loan difficulty

High transportationcost

S!

S

China Petroleum Procurement Federation of Independent Refineries

Chinese Independent Refineries’ Current Issues

25

Page 27: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Build more pipelines to reduce transportation costs.

Chinese Independent Refineries’ Current Issues

Laizhou Port莱州港

Yanzi Line (453km)

Laichang Line (110km)

Huangwei Line (190km)

Ridong Line (446km)

26

Page 28: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

The raw material change leads to a rising tax expense, so the fuel oil will still exist in the short term.

1,218 RMB/mt

26.70 USD/bbl

Fuel oil

purchase

Crude oil

0purchase

sale

Gasoline and diesel consumption tax

2,110 / 1,411 RMB/mt

36.03/26.88 USD/bbl

Chinese Independent Refineries’ Current Issues

27

Page 29: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Raise sales volumes of gasoline and diesel.

Cooperate with state-owned enterprises

2015 Shandong Gas Stations Layout

Build more gas stations

Cooperative marketingCompete with state-owned enterprises

Appropriate export

Sinopec22.93%

PetroChina8.71%

CNOOC0.47%

SHELL0.78%

Shandong Independent

Refineries 3.73%

Private63.39%

Others67.12%

Chinese Independent Refineries’ Current Issues

Increase purchase volumes

28

Page 30: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Increase the plant competitiveness.

Enhance units’ competitiveness

Hydrogenation technology

Follow-up unit update

Units’ energy consumption reduction

Units need to adapt to the feedstock structure change

Hydrogenation47%

Atmospheric and vacuum

28%

Reformer12%

RFCC 8%

Delayed coking5%

Newly-added refining units of Shandong independent refineries

Chinese Independent Refineries’ Current Issues

29

Page 31: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

The “floor price” protects refineries’ profit.

0

100

200

300

400

500

600

700

800

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16

RMB/mt

Shandong Independent Refineries’ Oil Refining Profit

Chinese Independent Refineries’ Current Issues

30

40/bbl

Page 32: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Strengthen international cooperation, and lengthen industrial chains.

2015Russia's Rosneft provided 10,000ktof light crude oil for ChemChina.The crude oil import quota of

ChemChina is 10,000 kt/a .

November 2015Dongming petrochemical signed along-term crude oil supply agreementwith BP ;The imported crude oil usage volume

for Dongming Petrochemical is 7,500kt/a.

January 2016Hengyuan Petrochemical acquiredthe Malaysian-Based Shell RefiningCompany.

The application of 3,720 kt/aimported crude oil use right fromHengyuan Petrochemical is waitingfor approval

Lihuayi Group signed agreements oncrude oil import with BP, Dutch Shell ,Switzerland Vitol ,etc.The imported crude oil usage volume

for Lijin Petrochemical is 3,500 kt/a.

Tianhong Chemical signeda strategic agreement withBP on crude oil import;The imported crude oilusage volume for Tianhong

chemical is 4,400 kt/a.

Chambroad established a trading company inoverseas with a main business of importingcrude oil .The imported crude oil usage volume for

Chambroad is 3,310 kt/a.

The independent refinerieswithout crude oil non-stateimport trade qualification arealso active to explore theoverseas market

运输

采购

国际合作加强

Chinese Independent Refineries’ Current Issues

Challenges Opportunities&

Marketing

Production

Procurement

Infrastructure

International cooperation is strengthening.

The floor price makes the crude oil refining come into practice.

31

Page 33: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Content

Content

32

Previous Issues

— Insufficient Crude Oil & Product Quality Upgrade

1

Current Situation

— Three Rights Obtainment & Status Promotion

2

Current Issues

— Challenges & Opportunities3

Chinese Independent Refineries’ Future

— New Start of Independent Refineries4

Page 34: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

4PART FOUR

Chinese Independent Refineries’ Future

— New Start of Independent Refineries

33

Page 35: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Chinese Independent Refineries’ Future

The industrial position of Shandong independent refineries is promoted. The demand for crude oil will be rising in the short term.

Break state-owned refineries’ monopoly

National policy support

Transformation & upgrading

Activate the refining industry

150,000

2,150,000

4,150,000

6,150,000

8,150,000

10,150,000

12,150,000

14,150,000

2012 2013 2014 2015 2016

bbl/day2012–2016 Chinese Crude Oil Apparent Consumption

Volume

34

Page 36: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Chinese Independent Refineries’ Future

Crude oil will be the only raw material, and Shandong independent refineries will start a new round of reshuffle.

山东地炼发展成熟之时,必能与中字头企业分庭抗礼

Mature stage of Shandong independent refineries

Crude oil

>99%

Raw material

Profit = Survival

Capital cost

Unit cost

Operating cost

Labor cost

Serious homogenization &intense internal competition

Future position = Survival

Brand

Integration

35

Page 37: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

National policy orientation

Independent refineries are a major force to promote thedevelopment of China's oil refining industry, and three rightsdelegation is only a new start for independent refineries.

The Chinese government hopes to build a large-scale anddiversified development pattern in Chinese oil refiningindustry.

The marketization of China's oil refining industry has neverstopped, which is the foundation for the healthy developmentof China’s refining industry. Shandong independent refineriesare of great significance for China’s refining industry.

Due to the tough energy security situation, the futureChinese policies will proceed from this aspect .

Chinese Independent Refineries’ Future

36

Page 38: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

Evolution of Chinese Independent Refineries

http://intl.sci99.com/

Analyst TeamExcellence Creates Miracle

DATA COLLECTION

37

Page 39: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

http://intl.sci99.com/

Data Report Value Added Service

Excellence Creates Miracle

SERVICE SYSTEM

Supply – Capacity, Output, Import, Stock, Operating rate, Storage capacity, Refinery data, etc.

Demand – Export, Apparent consumption volume, etc.

Regular Report Weekly/Monthly/Annual report, Data analysis report

Multi-client Report 2017–2020 China’s Independent Refineries Business Report

38

Event and training

Consulting

Advertisement

On-the-spot investigation

Page 40: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

http://intl.sci99.com/

CONTENTS

2017–2020 China’s Independent Refineries Operation ReportContents

Part 1 1960–2017 China’s Independent Refineries Development History

Part 2 China’s Independent Refineries’ Refining Process Analysis

Part 3 China’s Independent Refineries Product Circulation Analysis

Part 4 China’s State-Owned Integrated Refineries & Independent Refineries Oil Processing Section Key

Part 5 China’s Independent Refineries Development Outlook

1

2

3

4

5

39

Page 41: EVOLUTION OF CHINESE INDEPENDENT REFINERIES of... · 2018-04-19 · Chinese Independent Refineries’ Current Situation Independent refineries’ operating rate increased greatly,

http://intl.sci99.com/

Evolution of Chinese Independent Refineries

THANK YOU!

Comments and advice please [email protected]+86-533-6292651

Copyright © 2004-2017 SCi99.com INC. All rights reserved.Unauthorized retransmission or reproduction prohibited.