BP and Chevron will supply oil to China’s Yulong Petrochemical

A memorandum on supply in the amount of 400 thousand b/d of oil was signed.

The Chinese Yulong Petrochemical signed a memorandum with BP and Chevron on the supply of 400 thousand b/d of oil to its new refinery in northern China. Meanwhile, other Chinese private and public refineries, such as Sinopec and PetroChina, have been increasing Russian oil purchases at a discount in recent months to raise the refining margin. According to Energy Aspects Ltd., China’s oil imports from Russia this year may increase by 500 thousand b/d — up to 2.2 million b/d.

Yulong Petrochemical is building a refinery and ethylene production complex with a capacity of 1.5 million tons per year in Shandong Province. The company intends to start commercial operation of the entire complex by December 2024. Trial launches are scheduled for the end of 2023. Investments in the project are estimated at $20 billion.