Trend changes of raw material use structure in independent refinery

The main raw material of local independent refinery is fuel oil, and 82 local refineries  have only 1.7 million tons of domestic oil projects for domestic crude oil index. Since the opening of the import, major changes will occur in raw materials.

During the period of 2016-2019, the proportion of crude oil accounting for the raw material in a local independent refinery will be increasing quickly, and it will occupy the share of more than 90% of the entire independent refinery raw materials. At that time, the amount of crude oil utilization will reach more than 100 million tons.

Analysis of quality and structure of crude oil in independent refinery

The quantity and quality of crude oil demand in the independent refinery

Based on the characteristics of devices in local independent refineries, logistics conditions and the pursuit of efficiency, it prefers light crude oil with a small amount of processing, high sulphur, medium and heavy intermediate base and naphthenic to the choice of crude oil quality. However, with the expansion of crude oil import channels in independent refineries, the proportion of light crude oil is increasing.

Characteristics change of crude oil transport logistics in the independent refinery

In addition to the pagoda Petrochemical located in Ningxia, Yinchuan and the north panjin located in liaoning panjin, most of the other local independent refineries are distributed in Shandong, Zibo, Dongying, Heze, Rizhao, Weifang, Binzhou six cities.

(1)  In addition to the new refineries and coastal refineries, they are generally located in the inland city which is far from the port.

(2)  The transportation of crude oil to refineries is given priority to the high cost railway, highway transportation with the pipeline as the auxiliary way，which will gradually be transited to the transportation of pipeline-dominated.

(3)  Imported crude oil port is concentrated in Qingdao port, Rizhao Port, dongying port, Laizhou, etc.

原油、成品油主要管道情况表
序号	长输管道名称	输送能力（万吨/年）	管道情况	用户企业
1	日照-东明原油管道	1000万吨	输送原油	东明石化
2	烟台港西港区至淄博 原料输送管道工程	1500万吨	即将投用	京博石化、金诚石化、汇 丰石化、华星石化、正和 石化、昌邑石化
3	莱州-昌邑输油管线	1300万吨	输送原油、成品油管道	昌邑石化
4	黄岛至潍坊重质原料 输送管道工程	1500万吨	输送原油	中化弘润
5	董家口-潍坊-鲁中、北 输油管线	3000万吨	开工建设	潍坊、东营、滨州、淄博 四市独立炼厂企业
6	日照港-东营	2500万吨	开展前期工作	日照、临沂、东营、滨州、淄博市炼油企业
7	潍坊-青州管线	2000万吨	规划中	潍坊、东营、淄博三市独 立炼厂企业
8	东营港-广饶	1500万吨	规划中	东营及周边地市炼化企业

The situation of main imported crude oil receiving dock in Shandong

序号	港口	原油码头情况
1	青岛港	30万吨2座，20万吨2座
2	日照港	30万吨3座，10万吨1座
3	龙口港	10万吨2座
4	莱州港	10万吨1座，5万吨2座
5	烟台港	6.5万吨1座，30万吨
6	东营港	5万吨2座

It can be seen from the chart that Shandong province, in which the refinery is relatively concentrated, is currently only Qingdao, Rizhao Port (Yantai Port 300,000 tons of temporary unused) which have been equipped with international crude oil transportation commonly used VLCC combined discharge oil tanker wharf, while longkou, laizhou, dongying port can only be discharged below 100000 tons of oil tankers. Small boat freight is higher, due to a large number of small boats to unload and the tension of the dock resources resulting in the demurrage normalization of the local independent refinery tanker, which has increased the amount of logistics cost.

The infrastructure facilities have changed, and the logistics bottleneck has been improved

In the april to May of 2016, the news similar to the "Qingdao port congestion" was coverd by a lot of media,  it has now been alleviated and will not happen again in the near future.

In the early January and February when a number of refineries received quotas for imported crude oil, it coincided with a low international oil price, while a large quantity of crude oil was poured into the port of Qingdao, because the facilities for storage and transportation of the ports were not supported, resulting in a large number of oil tankers stranded. The multiple causes of this situation are now being solved one by one.

1） Imported crude oil unloading channels are scattered, which is no longer concentrated in Qingdao port. dong jikou port, rizhao lanshan port, longkou port, laizhou port and yantai port, all those are the unloading points of imported crude oil;

2） The transport vehicles of dangerous goods in shandong province have been increased, and the external transport bottleneck has disappeared so that crude oil will not remain in port for long periods of time;

3） Each port and the ground refining actively expands the crude oil storage tank capacity to enhance the unloading ability;

4） Crude oil pipeline between Yantai and Zibo and 300 thousand tons of crude oil terminal in Yantai is expected to formally put into use before the end of the year, also oil pipeline of Dongjiakou port - Weifang - Lu, Lubei etc, is under construction, so that the possibility of recurrence of the tanker's detention at the port for limited infrastructure is likely to be small.