Development Bottleneck of Independent Refineries
Relatively small scale, scattered capacity and low added value
Independent refineries have developed from small local refineries. And according to the institute's statistics, 36 of Shandong's main refining factories have an average refining capacity of 3.44 million tons every year. There are 10 local refineries with annual processing capacity of more than 5 million tons, and the scale is generally small except for some leading enterprises. The main devices such as decompression, catalysis and coking are small, and there are many sets of them. Although they have some flexibility, they are higher in the production cost of energy consumption and maintenance than the main refineries.
In addition to the production of gasoline and diesel, independent refineries with a complete set of deep processing of alkenes, alkanes, aromatic hydrocarbons and others have low added value. And due to fierce competition at home and abroad, the profits of styrene, polypropylene and PX are gradually declined. High added value of ethylene and its downstream synthetic resin, synthetic rubber, synthetic fiber and other products still have the demand space. But because of the need for high investment, local oil refining enterprises are limited a lot.
Lack of terminal, and product oil faces pressure of sales
Due to the lack of terminal sales channels, the market of product oil from independent refinery is facing fierce competition, and the sales pressure is large. And the high profit is obtained by the terminal companies such as petro China, Sinopec and private gas stations.
With the adjustment of domestic energy consumption structure, the growth of consumption of refined oil products has slowed down, and the impact of new energy vehicles that use natural gas or electric power is large, so that the supply of domestic product oil has become more and more serious. In addition to several refineries like Dongming Petro Chemical or Jingbo Petro Chemical that have terminal to consume a small amount of production, most of the refined oil have to be sold into two large companies and private terminal market at low price which is far below the national retail price.
Selling price of refined oil is cut down by terminal
Since 2015, from the difference between the sale price and the national retail price of the diesel oil in Shandong province, we can know that the profits of diesel which is 700-1500 yuan per ton and gasoline which is 1500-3000 yuan per ton are obtained by the terminal retail link.
Confronting with the pressures of environment and quality
The requirements of domestic environmental protection are increasingly strict, and the quality of diesel and diesel products has been upgraded rapidly. At present, the quality of oil products of independent refinery is uneven, so it is necessary to invest a large amount of money to upgrade the equipment, and it leads to the increase of cost. Enterprises that fail to meet quality standards may become the processing workshops of other enterprises and they will not escape the fate of being eliminated or acquired.
Weak voice in the industry and easy to be influenced by policy changes
Thanks to the reform and adjustment of China's oil and gas industry policy, local refineries have developed from Teapot to groups with international influence. But compared with Sinopec, petro China and other state-owned oil companies which are involved in industrial policy formulation deeply, local refineries have a weaker voice in the industry. Changes in policy may cause a big impact on local refining enterprises.
1. Restricted by the wholesale and retail policies of refined oil products and the layout of petrol stations, the construction of the sales network of local refiner enterprises is late and the space is small and imperfect.
2. Tax policy reform. The consumption tax has been raised three times since November 2014, rising to 1.52 yuan per litre of gasoline, and 1.2 yuan per litre of diesel oil. It adds a heavy burden to the enterprises.
3. Check the environment, quality, tax and other aspects of local oil refining enterprises.
The scale of the development is limited
1. Circular on issues concerning the administration and use of imported crude oil.
The new oil companies must sign a commitment to strictly implement the refining policy of state and industy. Without the approval of the investment department of the state council, the new construction or expansion of the refinery is forbidden. The competent authorities should take accountable and effective measures to eliminate construction of illegal production facilities. In case of violation of construction activities, they shall be punished according to law. The new oil companies and their legal representatives shall establish a credit record in the social credit agencies which are recognized by the state.
2. Planning of seven chemical industrial parks
None of the existing local refiners with import qualifications are in the seven petrochemical industry parks. There is no way for existing local refiners to develop the scale of production.