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Stable Output Expected from China's Yulong in 2025

REFINING

The Yulong refinery in China will face bottlenecks as it aims for production according to FGE.

  • It does not expect trials from the refinery until Q4 2024 and stable output until mid-2025.
  • Best case scenario of trials starting July/Aug 2024 would only mean on-spec production in early 2025.
  • The refinery still need approvals for downstream PX units while the crude pipelines from Yantai port (VLCC berth) to Longkou port (closets to Yulong) is still under construction.
  • With two FCCs and three HDCs, Yulong is expected to maximise the production of petrochemical feedstock.
  • The refinery has received 8.3mmt (over 60mmb) of crude import quotas this year – far more than it requires.
  • FGE reports Yulong has already bought some spot cargoes (2x ESPO, 1x Sokol, and 1x Oman), and are seeking more for May arrival.

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