On October 25, continuing the previous momentum, international oil prices continued to rise on Monday. The price of U.S. WTI crude oil fluctuated significantly during the session. It rose sharply at the beginning of the session and exceeded US$85 per barrel. It closed flat, setting a new high in 7 years.
At the same time, Brent crude oil futures also climbed to a 7-year high. Compared with the high oil prices before the epidemic, the oil price in October 2019 was about US$60 and has now risen by more than 40%.
As crude oil prices hit a seven-year high, Zhejiang Petrochemical Phase II was approved to import crude oil quota of 12 million tons!
On October 25, Rongsheng Petrochemical issued an announcement: Zhejiang Petrochemical has once again received the 12 million tons of imported crude oil quota approved by the Ministry of Commerce, which will help start the construction of its second phase project equipment. So far, Zhejiang Petrochemical has obtained a total of 32 million tons of crude oil quotas in 2021, and the three major private refining and chemical integration companies have been approved for a total of 54 million tons of imported crude oil quotas.
A few days ago, Rongsheng Petrochemical issued an advance announcement for the first three quarters of performance, with an expected net profit of 10.122 billion yuan, a year-on-year increase of 79.08%.
The announcement shows: During the reporting period, the company relied on the extra-large “less oil and more chemical” refining Chemical integrated device, optimize energy utilization, reduce unit product emissions, and achieve green and low-carbon development. After the “40 million tons refining and chemical integration project” of the controlled subsidiary Zhejiang Petrochemical Co., Ltd. was put into operation, the production of each device progressed smoothly, the operating load increased steadily, and the benefits were released significantly during the reporting period.
Recently, Zhejiang Petrochemical Corporation has once again received an imported crude oil quota of 12 million tons approved by the Ministry of Commerce. This is also the first time that an independent refinery has been issued a separate imported crude oil quota. So far, Zhejiang Petrochemical has obtained a total of 32 million tons of crude oil quotas in 2021, and the three major private refining and chemical integration companies have been approved for a total of 54 million tons of imported crude oil quotas.
It is understood that Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project is located in Zhoushan Green Petrochemical Base, with a total investment of 173 billion yuan, and construction started in June 2017.
This project is one of the four major private refining and chemical projects in China. The other three major projects are Hengli Petrochemical’s 20 million tons refining and chemical integration project and Shenghong Petrochemical’s 16 million tons Refining and chemical integration project and Hengyi Petrochemical 8 million tons refining and chemical integration project.
In May 2019, the first batch of units of the first phase of Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project began to be put into operation. By the end of that year, the first phase of the project was fully operational. At present, the first batch of units of the second phase project have also been put into operation.
Crude oil import quota
General trade The so-called crude oil import quota, officially called “crude oil non-state trade import allowance”, refers to the import of crude oil by a country’s government within a certain period of time. The quantity or amount is directly limited by setting a certain amount. Within the specified time limit, crude oil within the quota can be imported. If it exceeds the quota, it is not allowed to be imported, or higher tariffs, surcharges or fines can be levied before it can be imported.
The following are the application conditions for non-state trade import allowances on the Ministry of Commerce website. From the above application conditions, it can also be seen that to do crude oil trading business, not only does the enterprise need to have strong financial strength, as well as sufficient crude oil storage capacity and product sales capabilities. These conditions are an untouchable threshold for some smaller traders.
800,000 tons of ethylene 2 The alcohol unit may be commissioned and put into production in November
Polyester raw materials are under pressure again
The issuance of crude oil quotas has improved PX’s load. At the same time, the commissioning of the second phase 2# 2.5 million tons unit will also be put on the agenda, and PX production capacity will still be further expanded. For polyester raw materials, the issuance of quotas has increased supply or supply expectations. However, the PX-NAP price difference may still be difficult to expand significantly, and the direct cost support for PTA is weak.
Especially for ethylene glycol, the new 800,000-ton unit of Zhejiang Petrochemical Phase II 2# is the largest unit planned to be put into operation in the near future. Previously, due to the Due to crude oil quota issues, the load cannot be increased and some installations are delayed. Among them, the commissioning of the second 800,000-ton ethylene glycol unit in the second phase has been delayed. With the settlement of crude oil quotas, this new integrated 800,000-ton ethylene glycol unit may be put into trial operation in November, which will provide a boost to the currently weak market. More downward pressure on ethylene glycol prices. </p
