Converged maintenance of major refineries in northern China during mid-June and early July may impose limited impacts on South China LPG market, showed C1's research.
Qingdao Refining & Chemical in Shandong Province will ship no LPG to South China during 45-day overhaul, which will start on Jun 20. However, LPG supply from Shandong is less than 20% of South China's total inflows of arbitrage LPG delivered by barge.
Three major refineries in Northeast China, Jinxi Petrochemical, Harbin Petrochemical and Jilin Petrochemical, will basically maintain normal LPG supply to South China during turnaround period, said industry sources.
Northwest China, which usually sees LPG supplied to South China by rail, will resume normal supply soon. Yan'an Refinery and Urumchi Petrochemical will both complete maintenance end June and resume LPG supply early June, LPG commodity output of the two refineries is estimated to rise by 1,000mt per day by then, versus 300mt per day of reduction caused by turnaround of Lanzhou Petrochemical.
