Sinopec shuts processing unit in China for safety checks

China-based Sinopec has announced plans by Sinopec Guangzhou Petrochemical plant to shut down a processing unit at the facility, located in Guangzhou province.

The shutdown is part of an exercise to conduct safety and environmental checks after state media reported environmental problems.

The unit was shut down On 29 September, and the company has had to divert at least one imported crude cargo into storage.

The unit is expected to remain shut for at least 20 days. The Guangzhou plant has a total crude refining capacity of 270,000 barrels per day.

Sinopec is to decide whether to shut down the whole Guangzhou plant on 7 October.

The shutdown was spurred by Sinopec after state media alleged three of its subsidiary plants violated environmental rules.

The subsidiary plants include two refineries and a small petrochemical plant.

Sinopec Group’s Zhanjiang Dongxing refinery, with a capacity of 100,000 barrels per day, was also closed on 27 September. It has not yet been indicated when services will start again, and the refinery has also had to divert imported oil shipments into storage.

Closure of the other two refiners for three weeks would cut supply of diesel fuel by 400,000t, according to officials.

An official was quoted by Reuters as saying, "Sinopec is under lots of media and social pressure to close the plants, but at the same time the company is worried that such sudden shutdowns would cause fuel shortages."