Naphtha Output at Shandong Independent Refineries Surged in 2017

In 2017, the naphtha output at Shandong independent refineries reached around 13.59 million mt, up 50.87% year-on-year. With the increase in the independent refineries’ crude oil processing volume, the independent refineries’ crude oil refining capacity will continue rising. According to SCI, the naphtha output at Shandong independent refineries will remain in an uptrend in 2018, and the naphtha output growth rate is predicted to be around 14.6% in 2018.

There were two main reasons for the great increase in the naphtha output in 2017. First, the processing volume of imported crude oil at Shandong independent refineries was 65.2 million mt in 2017, covering 74% of the refineries’ feedstock processing volume. Therein, ESPO and Oman oil took up the biggest proportion. The average yield ratio of naphtha at Shandong independent refineries reached 15% in 2017.

Second, China was suffering overcapacity in the oil refining capacity, so some Shandong independent refineries were active in building reforming units. The reforming capacity at Shandong independent refineries reached 15.4 million mt in 2017. The increase in reforming capacity also pushed up the naphtha output.