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BEIJING, Nov 3 (Reuters) - Sinopec (0386.HK), Asia’s top oil refiner, plans to process a daily record 583,000 tonnes, or 4.26 million barrels per day (bpd) of crude oil in November amid increasing domestic diesel supply tightness, state news agency Xinhua said on Wednesday.
Government-mandated power rationing to factories aimed at achieving Beijing’s energy saving goal has slashed China’s diesel exports as plants rush to fire up stand-alone diesel generators. [ID:nTOE69Q03P]
Diesel shortages have been reported in some regions as traders prove reluctant to release stocks accumulated before the recent fuel price hike to the market because they expected strong future demand.
Sinopec has postponed planned maintenance in its Gaoqiao and Guangzhou refineries, the Xinhua report said, without elaborating.
Gaoqiao refinery in eastern Shanghai has refining capacity of 260,000-bpd while Guangzhou refinery in southern Guangdong province has capacity of 270,000-bpd.
Sinopec (600028.SS) has also booked 200,000 tonnes of diesel in overseas markets, which would be shipped to the domestic market when supply was tight, the report said.
It has planned to import 130,000 tonnes of feedstocks for ethylene crackers in the fourth quarter so as to leave more domestic crude distillates be used for diesel production, the report added. (Reporting by Ben Blanchard and Wang Lan, writing by Jim Bai; editing by Keiron Henderson)