Sinopec Corporation, a state refining giant in China has recently announced the merger of its two refineries in Guangdong to follow up to the rising competition in South China. The merger took place in late July and is named as Zhongke Refining and Chemical Company after its two plants in Zhanjiang namely Dongxing Petrochemical and Zhongke Refinery.
The new entity incorporates a crude refining unit of 300000 bpd followed by a scheduled commencement of Ethylene Complex in coming September. WTI crudes sourced from U.S will provide efficient Naphtha yield for the required initiation of Ethylene plant the refinery. In 2019, U.S oil exports to China were lulled on the unsettlement of sourcing deal with Washington. However, on the back of the Phase one trade deal signed in January, China resumed oil sourcing from U.S. earlier this year. Guangdong in China is its topmost oil consuming province.