Aramco-backed Chinese refiner cuts output as oil supply tightens
Zhejiang Petrochemical Corp, a major Chinese refiner backed by Saudi Aramco, is shutting down a 200,000-barrel-per-day crude processing unit as it advances maintenance work amid tightening global oil supplies linked to the Middle East conflict.
A company representative said that the month-long overhaul scheduled for March will reduce overall refinery throughput by about 20 percent, News.Az reports, citing foreign media.
With a design capacity of 800,000 barrels per day, the facility is among China’s largest refineries and had been operating above its nameplate capacity in February, according to industry sources.
The ongoing US-Israeli war with Iran has significantly disrupted shipping through the Strait of Hormuz, a vital corridor that handles roughly 20 percent of global oil supplies.
As the world’s largest oil importer, China sources approximately half of its crude from the Middle East. Industry sources say the prolonged supply squeeze, which has driven oil prices higher, is likely to prompt other Chinese refiners to scale back operations as well.
News.Az
By Nijat Babayev
