Sinopec Group Cuts Ethylene Output to Boost Fuel Production

China Petrochemical Corp. (1314), the nation’s largest oil refiner, is cutting ethylene output this month and boosting fuel production to meet rising demand in the planting season.

Five refining units, including Maoming, Yanshan and Zhongyuan, will reduce March ethylene production by a total 30,000 metric tons versus an earlier plan and increase oil- product output by 100,000 tons, the company known as Sinopec Group said in a statement on its website today. The measures may continue in April if there is a need from the market, it said.

The state oil refiner, parent of Hong Kong listed China Petroleum & Chemical Corp (600028), or Sinopec, is boosting gasoline and diesel output as the central government increases oil-product prices as much as 7.8 percent starting today. The economic planner said yesterday that the tariff adjustment is aimed to ensure domestic fuel supplies amid the planting season.

The measures will help ensure stable fuel supply to the market as some refining plants will conduct maintenance in March and April, the Chinese oil company said. Sinopec Group will continue maintain “high refinery run rates”, according to the company statement, which didn’t elabrate.

(Bloomberg.com, Edited by Topco)