China Daily Oil Summary: Yulong Production to Start in H1 2025

MNI (London) - China’s Shandong-based Yulong Refinery is expected to start stable and on-spec production in 1H 2025 according to FGE. Construction of the project is still ongoing, and no major units have been completed or undergone testing.

• The refinery and associated petrochemical facilities are expected to be ready around 2Q 2024, followed by crude for line filling and stock building ahead of trial runs in 3Q 2024.
• CDU capacity utilisation rates at China’s independent refineries averaged 64.88% in the seven days to Dec. 4, up 0.89 percentage points on the week, according to OilChem.
• At independent refineries in the Shandong region, CDU capacity utilisation averaged 60.17% in the week to Jan. 4. This is up 2.17 percentage points on the week, but down 5.82 percentage points on the year, OilChem said.
• YUAN: The currency weakened to 7.1520 against the dollar from 7.1434 on Wednesday.
• RATES: The seven-day weighted average interbank repo rate for depository institutions (DR007) decreased to 1.7671% from 1.7706%, Wind Information showed.
• FROM THE PRESS: Authorities should comprehensively examine inefficient investments totalling over CNY20 trillion every year, and reallocate fiscal funds to increase resident income, improve social security and subsidise consumer spending to help achieve over 5% economic growth in 2024, said Teng Tai, president at Wanbo New Economic Research Institute.