Peiyang Chemical Equipment Co., Ltd.
The Mutation Analysis towards the Preference of Demanding for Materials

The changes of the tendency for use structure of crude materials in independent refineries

The major crude materials in local independent refineries is fuel oil. There are total 82 local independent refineries but only have the program of 1 million 700 thousand tons national oil. Since the export and import, the crude materials will be changing significantly.

From 2006 to 2019, the proportion of crude materials to the local independent refiners will have been increasing rapidly. In addition, in 2018, crude oil will occupy more than 90% of the whole independent refineries towards crude material, and its usage will reach more than 1 tons at that time.

The demanding quantity and quality for crude materials of independent refineries.

Based on the features and logistics conditions of local independent refineries and the pursuit of efficiency, they are more preferring to middle and heavy intermediate base and naphthenic base oil with high sulfur as well as a small quantity of processed light crude oil. But with the development of independent refinery crude oil import channels, the proportion of light crude oil is increasing.

The following figure is the first half of 2016 for independent refinery imports of crude oil species distribution:

The changes for features of transportation logistics of crude materials in independent refineries

In addition to pagoda Petrochemical Company located in Ningxia, Yinchuan, the north of Panjin in Liaoning, Panjin, the other local independent refineries are mostly distributed in Shandong, Zibo, Dongying, Heze, Rizhao, Weifang, Binzhou , together six cities.

(1)    In addition to the new refineries and coastal refineries, they are generally located in the inland city, far from the port.

(2)    It is chiefly using high—cost rail and highway to transport the crude oil to the refineries with the help of channels. After that, to use pipelines mainly.

(3)    The unloading ports for import of crude oil are in Qingdao Port, Rizhao Port, Dongying Port and Laizhou Port.

The fact sheet for main pipelines of crude oil and product oil

Order number

Name of pipelines for transporting in long distance

Delivery capacity (10000 tons / year)

The situation of piping

The user of enterprise


Rizhao—Dongming pipeline of crude oil


To transport the crude oil

Dongming Petrochemical Company


The pipeline project of West Port in Yantai port to Zibo for raw material


It will be used soon

Jingbo Petrochemical Company, Jincheng Petrochemical Company , Petrochemical, Petrochemical Company , HSBC and Huaxing Petrochemical Company, Changyi Petrochemical Company


The pipe laying from Laizhou to Changyi


To transport the crude oil and oil product

Changyi Petrochemical Company


The project of transporting heavy feed stock from Huangdao to Weifang


To transport crude oil



The north pipe laying of oil of Dongjiakou - Weifang - Shandong


To begin the construction

The local independent refineries in Weifang, Dongying, Binzhou, Zibo


Rizhao Port—Dongying


To carry out preliminary work

The local independent refineries in Rizhao, Linyi, Dongying, Binzhou and Zibo


Weifang—pipeline in Qingzhou


In planning

Independent refinery enterprises in three cities of Weifang, Dongying and Zibo


Port of Dongying - Guangrao


In planning

Refining and chemical enterprises in Dongying and its surrounding cities

The fact sheet of main bodies in Shangdong for picking up and unloading ports of imported curde oil

Order number


The situation for the wharf of crude oil


Qingdao Port

2 ports for 300 thousand tons,and 1 port for 200 thousand tons


Rizhao Port

3 ports for 300 thousand tons and 1 port for 100 thousand tons


Longkou Port

2 ports for 100 thousand tons


Laizhou Port

1 port for 100 thousand and 2 ports for 500 thousand


Yantai Port

1 port for 65 thousand and 300 thousand


Dongying Port

2 ports for 50 thousand

From the chart above, we can get to know that the refineries are mostly located in Qingdao, Rizhao Port (Yantai port, 300 thousand tons, not yet available), the tanker berth with VLCC level which can be used for loading and unloading the international crude oil, and Longkou, Laizhou and Dongying Port can only pick up and unload the tanker berth under 100 thousand tons. The fee for smaller ship is high and due to the large number of boats unloading dock, resource constraints, resulting in the local independent refinery tanker demurrage normalization. The high demurrage will increase as the amount of logistics cost.

Infrastructure changes and logistics bottlenecks have improved

In April and May in 2016, news comes up frequently on many media outlets which is similarly to the "Qingdao harbor jam". Nowadays , this phenomenon has eased and will not happen again in the near future.

In January and February when many refineries start to have the quota of using the imported crude oil , as price of international oil lowers, the refineries will purchase a lot of crude oil which will make the Qingdao Port become busy. But the storage and transportation facilities in the port are not complete, resulting in a large number of oil tankers stranded. The multiplicity of problems that lead to this situation are being solved one by one:

1) The unloading channels of crude oil are scattered and no longer concentrated in Qingdao port. Dongjiakou port, Rizhao Port, Longkou port, Arashiyama Laizhou port and Yantai port are the ones for unloading the imported crude oil;

2) The transport of dangerous goods in Shandong has increased, the bottleneck of the export has disappeared, and the crude oil will not be overstock in the port for a long time;

3) Each port and refineries are actively expanding tank capacity for refining crude oil, improving handling capacity;

4) Yantai - Zibo pipeline for crude oil and Yantai with300 thousand tons of crude oil terminal is expected to formally put into use before the end of the year. Dongjiakou port - Weifang - Lu Zhong, Lubei will have oil pipeline construction. As a result, the possibility of a recurrence of the tanker's detention at the port will be constrained by the limited infrastructure.