CNPC To Postpone Start-Up Of Guangxi Refinery In China

Published: 22-Apr-2009

By: Staff Writer Staff Writer Staff Writer

China National Petroleum Corp. (CNPC) will delay the set up of its Guangxi refinery in southern China to the first half of 2010 from the second-half of 2010. Construction of the 200,000 barrel-per-day (bpd) Guangxi refinery will be concluded by year-end 2009 and operations will commence in the first half of 2010, Wu Enlai. The company did not give any clarification for the postponement other than saying the schedule was part of overall arrangements by CNPC.

CNPC, operating its core businesses ranging from oil and gas exploration, production, refining and sales via listed PetroChina, had decreased its oil production target in 2009 by 4% from 2008 levels while scaling back crude processing goals by 1.4% amid signs of weakened demand in the wake of the global economic hold up.

Analysts had anticipated the world's second-largest oil user to either delay the start-up of new refineries that could amount to around one million barrels per day or lower processing rates to cope with a potential supply glut.

But some recent indications have shown that the world's third-largest economy may recover sooner than later, quickening a recovery in fuel demand, which could lead to an upward revision of operating plans by major oil firms.

China's implied oil demand in March 2009 dropped 0.3%, compared previous year, but stood at its highest rate since last September 2009 as refiners ramped up production after a pick-up in domestic sales thinned stocks.

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