Sinopec to upgrade refineries

Sinopec Corp. said its plans to invest RMB8 billion (US$1.17 billion) in upgrading its refineries so as to meet China’s State III National Emissions Standard, the equivalent of Euro III. The investment is geared at upgrading some of Sinopec’s facilities and its 10 refining enterprises. Meanwhile, the company will finish adding five secondary units to the 100,000 barrel per day (bpd) Dongxing refinery, which is 75% owned by Sinopec, by the end of August and will raise operating rates to 90% in the fourth quarter, officials said. The upgrades to the plant include a 1.2 million ton-per year (tpy) residue fluid catalytic cracker and a 600,000 tpy gasoline hydrotreating unit which is expected to enable the plant to produce higher quality fuels. The estimated cost to upgrade the facility would be about 10% below an earlier targeted budget of RMB2.37 billion (US$343 million), due to lower prices of materials like steel. (May 26/27, 2009)