Shandong Province recently conducted a thorough investigation towards small CDUs with a capacity of 2 million tonnes or less that are still in operation in answer to the Work Plan for Phasing Out Crude Distillation Units with a Capacity of 2 Million Tonnes or Less in Shandong Province.
Among the remaining few that are still in operation, most of them are owned by bitumen producers or waste mineral oil processing companies, and are compliant with energy conservation, environmental protection, and safety requirements, learned by OilChem. These facilities are exempted from elimination.
Therefore, at this stage, integration is at the priority of upgrading Shandong's refining capabilities.
Yulong Refining and Chemical Co., Ltd. is such an integrated entity of ten refineries, with the process lasting over 2020-2022. The ten refineries involved a total capacity of 26.96 million tonnes that have been eliminated.
Once completed, it will be an important market player. Specially, Yulong Refining and Chemical is already among the independent refineries qualitied to receive the fourth batch of crude oil import quotas, which is estimated at 9.5-10.5 million tonnes.
Written by Aggie Hu, huchenying@mysteel.com
Edited by Navy Liu, liuchuanjun@mysteel.com