PetroChina Kunlun Gas has recently taken over LPG sales from Sanxing Chemical Co (transliteration) in Hebei's Huanghua city, according to industry sources.
"Kunlun Gas supplies feedstock to us and it is in charge of the sales of ultra-clean LPG and propane produced by us, while we will still be responsible for LPG pricing," said a source with Sanxing Chemical.
According to the agreement between Kunlun Gas and Sanxing Chemical, Kunlun Gas will supply about 180mt of feedstock to the latter per month, C1 learned.
Previously, Sanxing Chemical sourced feedstock for LPG production mainly from Northeast China and Northwest China. The refinery shut down production because of feedstock supply shortage in early March and it resumed production in early April, after signing the agreement with Kunlun Gas.
The cooperation will have very little influence on North China's LPG market, as Sanxing Chemical is one of the smallest independent refineries in North China, said a source with a local LPG deep processing plant. Sanxing Chemical produces only about 100mt of ultra-clean LPG and 40-50mt of propane per day.
It is not known yet whether Kunlun Gas will take over LPG pricing from Sanxing Chemical too in the future.
Sanxing Chemical has a 20,000-mt/yr MTBE unit and a 50,000-mt/yr aromatization unit. Its main products are MTBE, ultra-clean LPG, propane and propylene.
