Sinopec to Increase Oil Refining Volume

China Petroleum & Chemical Corp (Sinopec) will increase its daily oil processing to 583,000ta day, up 10% on the previous year and exceeding the October record by 5,900t a day.

Sinopec is boosting its processing volume to avert diesel shortages as farmers and factories burn more fuel, according to Bloomberg.

China is accelerating its power restrictions to meet efficiency targets, which is leading manufacturers to turn to their own diesel generators as use of fuel climbs during the autumn harvest.

The refiner is also reducing its feedstock production to make ethylene in favour of diesel output and it will keep its oil-product stockpiles at low levels this month.

Sinopec will reward plants that beat diesel production targets and is limiting the output of kerosene.

At present, the firm is making immediate imports of 200,000t of diesel to ease tight supplies in regions such as Zhejiang, Gansu and Jiangxi.