Online of PetroChina's Qinzhou refinery to change LPG distribution structure in southern China

LPG distribution structure in South China's Guangxi and nearby areas is expected to change after PetroChina's giant Qinzhou refinery starts operation this June.
Source:ECF     Time:29 Jan 2010
 LPG distribution structure in South China's Guangxi and nearby areas is expected to change after PetroChina's giant Qinzhou refinery starts operation this June.
 
When coming on stream, the 10-mil-mt/yr Qinzhou refinery is estimated to produce around 400,000mt of LPG a year. The massive output will reduce LPG inflows from Northwest China and West Guangdong. These two markets supplied up to 450,000mt of LPG to Guangxi last year. Guangxi's LPG demand hit 500,000mt or so in the year, with merely 50,000mt supply from local refineries.

In addition, as the new refinery is also slated to market its LPG in Southwest China's Yunnan and Guizhou provinces, market shares in these areas would be re-divided. Sales of LPG from Northwest China are likely to be hit most.
Furthermore, the refinery's participation in barge market of South China's Pearl River Delta is forecast to intensify competition there. Local market players would cut demand for LPG from Northeast and East China markets, which barged about 150,000mt of the resource to Pear River Delta last year.

Located in Qinzhou of South China's Guangxi Zhuang Autonomous Region, the refinery will mainly consume crude imported from Sudan. It will hopefully get approval from the National Development & Reform Commission by the end of this year to expand its annual refining capacity by another 10-mil mt. When the Phase II project is operational, the refinery is expected to move some LPG cargoes to nearby Vietnam market to ease oversupply
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