Oil & Gas

10 Mar 2022

Sinopec Keeps Refinery Operations 'Fairly High' to Ensure Fuel Supply

10 Mar 2022  by   

The company logo of China’s Sinopec Corp is displayed at a news conference in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip

China's Sinopec is running its refineries at "fairly high" operational rates, the firm said, seeking to ensure steady fuel supply in the country amid tight global crude and products flows in the wake of Russia's invasion of Ukraine.

"Our refineries are running steadily, with refining rates and refined products' inventory staying at a fairly high level," said Ma Yongsheng, Sinopec's chairman, during an interview with the state-backed China News Agency.

State-backed Sinopec is the biggest refiner in Asia with an annual refining capacity of about 300 million tonnes or 6 million barrels per day .

"No matter how the market situation changes, capable and determined to ensure oil product supply," said Ma.

Benchmark oil prices have surged more than 30% since Russia invaded Ukraine in late February and have touched the highest level since July 2008 of nearly $140 a barrel.

Ma said the refined oil inventory at Sinopec's marketing firms are at a "reasonably high level", and that the group has strong anti-risk capability as it has a complete upstream, midstream and downstream industrial chain.

Beijing has told Chinese state refiners to consider suspending exports of gasoline and diesel in April as the Ukraine war heightens concern of shortages, according to sources on Wednesday.

Ma also said during the interview that Sinopec will step up exploitation and development of petroleum and gas, and accelerate the construction of "green hydrogen" projects.


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