Sinopec cuts ethylene production to boost output of oil products

As China announced its largest fuel price increase in 33 months, China Petroleum and Chemical Corp. (Sinopec) cut ethylene production in five refineries in order to boost output of oil products. The move was reported on the website of Sinopec’s parent company, China Petrochemical Corp. (Sinopec Group). Sinopec’s move was aimed at compensating refiners for rising crude oil costs. It was also meant to encourage them to maintain ample supplies because demand is expected to pick up during spring. The refineries involved include Maoming, Yanshan and Zhongyuan. All three refineries will reduce ethylene output by 30,000 tons in March and increase oil products output by 100,000 tons. (March 20, 2012)