March 11, 2019 / 6:26 AM / 5 months ago

UPDATE 1-China's state oil refiners plan overhauls, mainly in Q1, Q2 - sources

(Adds details, calculation of impact of outages)

BEIJING/SINGAPORE, March 11 (Reuters) - At least six Chinese state-owned refiners will shutter some crude oil refining capacity for planned maintenance this year, according to people with knowledge of the matter.

At least one Sinopec refinery and another three owned by PetroChina will launch a full plant overhaul, sources at the plants told Reuters. Two others will only close part of their crude oil distillation capacity for repairs.

With each shutdown estimated at 50 days, the planned overhauls are expected to remove close to 120,000 barrels per day (bpd) of crude throughput on average if spread over the course of the year, according to Reuters’ calculations.

Most of the refiners plan to start their maintenance in the second quarter, avoiding the third quarter when local demand for fuel products will peak, including gasoline for the October holiday week and diesel for the harvest season.

The refineries that plan to close are PetroChina’s 10 million tonne per year (tpy) plant in Liaoyang, its similar sized WEPEC plant in Dalian and its 7 million-tpy Jinzhou plant, all in the northeastern province of Liaoning, the sources said. Sinopec plans to close its 3.5 million-tpy Qingdao refinery on the east coast and will shutter a 5.2 million tpy crude unit at its Guangzhou refinery and an 8 million tpy crude distillation unit at its Jinling refinery, also on the east coast, they said.

China, the world’s No.2 oil consumer, is expected to see a growing surplus of domestically produced fuel this year as two very large privately controlled refineries are due to come online, leading to growing exports of the refined fuel.

Reporting by Meng Meng and Aizhu Chen; editing by Richard Pullin

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