business

Refining

Sinopec is China's largest petroleum refiner and oil products producer, with its refining capacity ranking the 2nd  in the world. Refineries of the Company are mainly located in China's southeast coastal area, middle and lower reaches of Yangtze River and North China, regions of the most dynamic and most developed economies in the country. These refineries are blessed by superior location, convenient transportation, and robust market demand. The Company's major oil products include gasoline, kerosene, diesel, lube oil, etc.

Refining Configuration

The Company owns a wide spectrum of processing facilities including atmospheric/vacuum distillation, FCC, hydrocracking, delayed coking, catalytic reforming, aromatic separation, hydrofining, alkylation, gas fractionation, asphalt, hydrogen production, desulfurization and sulfur recovery, etc. Some refineries also have solvent deasphalting, solvent dewaxing, wax molding, solvent refining, clay refining and lube oil hydrofining, etc.

Refining Capacity

By end 2011, the company’s total processing capacity reached 249 million tons. Major production units, including FCC, delayed coking units, catalytic reforming units, hydrocracking units, hydrofining units for gasoline, kerosene and diesel, etc., achieved a certain increase of capacity compared with last year. The Company has pumped more technical support to enhance comprehensive refining capacity and inferior crude processing capacity. In 2011,  Beihai 5 million tons refinery reconstructing project in different palce, Changling 8 million tons refined product upgrading project ,Zhenhai 23 million tons refinery supporting project,Gaoqiao 12.5 million tons lubricatant revamping project were successively put into operation, increased effectively the Company’s processing ability and the integration of refinery, chemicals production and lub production. RDS newly building in Changling ,FCC and coker revamping in Beihai, Guangzhou and other enterprise effectively improve the Company’s low-grade crude processing capability.The newly-built CCR in Jingmen,Gapqiao and Beihai were successively put into operation, improved the Company’s product structure and decreased the cost of hydrogen manufacturing.We comprehensively implement GB III gasoline quality upgrading. the newly-built gasoline hydrogenation units in Beihai,Cangzhou,Shijiazhuang,Jinan,Jiujiang,Zhenhai and sulphur units in Luoyang,Zhenhai,Jingmeng,Beihai and other enterprises were put into operation,improving our capacity of clean production producing. Currently, 11 refineries under Sinopec have a capacity of over 10 million tpa each.

Refining Technologies

Owing to years of self-development on technologies, the Company boasts a strong and experienced team in refining, R&D, engineering and construction. The Company has a series of major refining technologies such as RFCC, Catalytic Reforming, high-pressure hydrocracking, medium-pressure hydrocracking, hydrofining, residue hydro and lube oil hydrotreating and reforming technologies, as well as relevant catalyst development and commercialization capabilities. The Company takes a leading position in China in terms of refining technologies. Some of its technologies are up to international advanced level.

Product Quality

In 2011, the Company has maintained the quality of all the ex-work refining products at a 100% on-spec rate. All of its products have qualified the spot check held by technology supervision departments of the State, local governments as well as the Company its own.

Production & Operation

The Company continued to reinforce management as well as scientific and technological advancement, the main refinery technical and economic indicators was continue to ascend . In 2011, Light oil yield of 0.29 percentage points year-on-year rise. Refining yield of  0.26 percentage points year-on-year rise. Refining energy-consumption was decreased by 1.07 units. Processing loss was decreased by 0.05 percentage point and The loss rate of crude oil storage and transportation was decreased by 0.02 percentage point all year round.

Petroleum Products

Sinopec is the largest petroleum products producer and supplier in China. Its major products include gasoline, kerosene, diesel, lubricant, chemical light feedstock, fuel oil, solvent oil, petroleum wax, asphalt, petroleum coke, sulfur, LPG, propylene, polypropylene and benzene. The category and usage of major products are as follows:

Gasoline labeled 90#,93#,97#,and 98#, and the quality can meet GBⅢ, GBⅣ and Euro IV emission standard.

Diesel varies in such grades as No.5, No.0, No.-10, No.-20 and No.-35, and the quality can meet the GBⅡ,GBⅢ, GbⅣ and the Euro IV emission standard. Diesel products are used in many areas such as urban diesel automobiles, agricultural automobiles, railway transportation, waterway transportation, fishing, electric power, agricultural machinery, etc.

Jet fuel oil complies with the National critierion. While meeting the domestic demand, jet fuel oil is also exported to Hong Kong and other regions. Six subsidiaries of Sinopec Corp., namely Sinopec Zhenhai Refining & Chemical Co., Ltd., Sinopec Maoming Company, Sinopec Guangzhou Company, Sinopec Gaoqiao Company, Sinopec Shanghai Petrochemical Co., Ltd,Sinopec Hainan Petrochemical Co. Ltd., and Sinopec Qingdao Refining Corp., all have proved themselves qualified in the annual quality guarantee inspection held by Hong Kong International Airport.

Lubricants(grease), categorized by application, include automotive lube oil, industrial lube oil, synthetic lubricant grease and metal working fluids (MWF), are widely applied to aviation, spaceflight, nuclear industry, electronics, military weapons, shipping, automobile, mechanical processing, metallurgical, refining, chemical, and instrumentation areas, etc. The Company's synthetic lubricant grease takes a leading position in the world. The specialty grease products have been successfully applied to China's Shenzhou-series spaceships and contributed to the successful launch of Shenzhou V, Shenzhou VI and Shenzhou Ⅶ manned-spaceships. The product was recognized by China Aerospace Science and Technology Corporation as the reliable product with stable performance.  As the dedicated oil for China's Antarctic research vessel Snow Dragon, Sinopec Great Wall lube oil has contributed to the success of China's Antarctic scientific research. The Company's various engine oil, hydraulic oil and gear oil were granted certificates from many international companies and rating institutions. Sinopec Great Wall lube oil has become the dedicated lube oil for Beijing 2008 Olympic Games. The Company has established good cooperative relationship with many domestic automobile and motorcycle manufacturers, who use Sinopec Great Wall lube oil as ex-factory fill oil or service fill oil.

Asphalt products include heavy-traffic road asphalt (Class A and Class B, as newly regulated by the Ministry of Communications), modified asphalt, road petroleum asphalt, emulsion asphalt, asphalt used as a protecting coating for piping, asphalt for electric wire, water-proof asphalt, rubber asphalt, asphalt for painting, and insulated asphalt. The past few years witnessed a significant growth of the output of the Company's heavy-traffic road asphalt and modified asphalt which have been widely applied to motorways, urban public roads, airport runways, racing tracks and bridge pavements. After it was successfully applied to the racetrack in Shanghai International Circuit in 2004, Sinopec Donghai modified asphalt was chosen for the road pavement of Donghai Bridge, Shanghai Hongqiao Airport, Beijing Capital Airport Motorway, Yangtze River Tunnel-Bridge and other national key road construction projects. Meanwhile, with the Ministry of Railway, the Company developed emulsion asphalt specialized in railway ballastless track, which has been applied in test section of Wuhan-Guangzhou high-speed railway, Shijiazhuang-Taiyuan railway, Harbin-Dalian railway, Shanghai-Nanjing railway, etc