Shandong refiner Haiyou extends crude unit shutdown indefinitely
BEIJING, (Reuters) - Independent Chinese refiner, Shandong Haiyou Petrochemical Group, has no definite plan to reopen its crude oil distillation unit (CDU) after shutting it down sometime in late May, two industry sources with knowledge of the plant's operation said.
The plant, in the city of Rizhao in Shandong province, owns a CDU with a capacity of around 70,000 barrels per day (
Haiyou, however, will keep open its 1 million tonne-per-year delayed coker, a unit that processes residual fuel oil into lighter refined products such as diesel and gasoline, said one of the sources.
Falling profit margins following Beijing's move to tighten tax rules for independent oil refiners and blenders could be one reason for
Haiyou has an annual crude oil import quota of 3.2 million tonnes.
Both sources declined to be named as they are not authorized to speak to
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