PetroChina closes refinery and cuts oil processing

Fushun Petrochemical Company, a division of PetroChina, has closed its 1.2 million tpy oil refinery in Fushun in order to remove a potential safety hazard.

Expanded coal mining in the proximate areas led to serious surface deformation at the refinery during the last two decades. The company attempted reinforcement of the building and the relocation of particular facilities, but has had to resort to closure. All crude will be processed at another refinery.

The company also unveiled plans to upgrade technologies in the facility to build a 10 million tpy oil refinery and a 1 million tpy ethylene production base.

PetroChina is also planning to cut daily oil processing at its Dalian plan by 10% during March 2011 due to refining losses. The plant, PetroChina’s largest, will refine 366 500 barrels this month, compared with 408 386 in February.

PetroChina is not making any profit as the breakeven crude price at their plants is US$ 90 a barrel, while current prices are lingering at approximately US$ 100 a barrel.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16032011/petrochina_closes_refinery_and_cuts_oil_processing/