CNPC to supply crude oil to independent refiners
China National Petroleum Corp (CNPC) will supply crude oil to independent refineries, state media reported, as Beijing ups pressure on its state-owned firms to ensure domestic supplies during lingering shortages.
CNPC has already contacted small plants about crude oil supply, and offered to buy their refined products at a price that they find acceptable, the state television broadcaster said in a report on its Web site (www.cctv.com).
The country’s top oil and gas firm expects to add 600,000 tonnes of diesel supply to the tight domestic market in the coming two months through imports and increased production in independent refineries, the report added.
CNPC would increase crude oil supplies to local refineries in the northeast and northwest regions and in Shandong province as long as they are willing to start processing, CNPC was quoted saying.
The firm expects to buy back an additional 300,000 tonnes of oil products from the independent refiners in December and the first quarter of 2008, the report said.
Local refiners in Shandong had told Reuters earlier this month that they were keen to access more supplies of crude oil, which are strictly controlled by state-owned firms.
CNPC, parent of listed PetroChina (PTR.N: Quote, Profile, Research)(0857.HK: Quote, Profile, Research), also plans to import 200,000 tonnes next month.
Two cargoes totalling 70,000 tonnes would be shipped before Dec. 20, one each to east and to south China, the report said. Another cargo of 30,000 tonnes would be shipped to east China by the end of the month.
The company is contacting shippers to fix the delivery date for the remaining 100,000 tonnes, the report added.
Tags: CNPC, PetroChina, Petroleum