Another Chinese berth for VLCCs

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jul 2008

VLCCs can now call at China Petroleum and Chemical Corporation (Sinopec)'s new crude oil terminal at Caofeidian in northeastern China. Caofeidian has a VLCC berth alongside a 300,000 tonne, or 2.2 million barrel, crude oil terminal. Other new facilities include eight 100,000m³ storage tanks, which can hold up to 5 million barrels, and a 190 kilometre oil pipeline. The pipeline links Caofeidian in Hebei province near Beijing to an oil transfer hub in the port city of Tianjin, where Sinopec runs a 110,000 barrels per day refinery.
Reuters reported that the new facilities, the first to serve Sinopec's Yanshan refinery in Beijing, should be ready for use from around August.
The new Caofeidian terminal will allow the inland Yanshan refinery to receive up to 2 million barrels of crude from each VLCC.
This capacity is coming on-line amid Yanshan's recent upgrading drive to process 'cheaper' sour crude oil from the Middle East.
The Caofeidian facilities will also serve Sinopec's Tianjin refinery after the plant's capacity is tripled to 300,000 barrels per day by late 2009.
Both refineries are currently relying on a crude terminal at Tianjin port that has a smaller handling capacity because of its shallow draft.
China, which now imports almost half of its total crude oil requirements, has set up VLCC terminals in almost all its 11 coastal regions.
According to Lloyd's List, Sinopec recently set up a joint venture with the Tianjin Port Group to develop a 300,000 tonne crude terminal at Tianjin port to cater for VLCCs.
Sinopec is listed in Shanghai, New York and Hong Kong, but is majority controlled by the state-owned Sinopec Group.

Source: PortWorld