Thứ Hai, 25 tháng 11, 2013

Sinopec Qingdao Refinery Disrupted as Blast Death Toll Rises

China Petroleum Chemical Corp. (386),
Asia’s largest refiner, said operations at its “super-large”

production complex in Qingdao will be disrupted after a crude

pipeline leak and blast that killed at least 52 people.


The 10 million metric-ton-a-year facility will have “some

disruptions,” Lv Dapeng, a Beijing-based spokesman for the

company known as Sinopec, said in a phone interview yesterday,

without giving further details. The explosion occurred after oil

leaked from the pipeline into Qingdao’s municipal rainwater

network. Xinhua News Agency said 136 people are injured and 11

are missing.


The incident is the latest in a string of fatal industrial

accidents as China seeks to improve workplace safety. In June, a

fire at a poultry plant in the northeastern province of Jilin

killed 120 people in the nation’s deadliest blaze in 13 years.

Chinese President Xi Jinping visited relatives of people killed

and injured in the Qingdao blast, China National Radio reported.

Sinopec will cooperate with the government on a probe into the

accident, the company said today in a statement to the Shanghai

Stock Exchange
.


“At this stage, the company’s main task is to avoid

further accidents by checking if there’s more gas combustible

within the rescue zone,” Lv said by phone yesterday, adding

that the spillage of oil is under control. The company is still

investigating the cause of the leak, he said.


Sinopec’s refining and petrochemical site at Qingdao in

Shandong province produces more than 7 million tons of gasoline,

kerosene and diesel a year, according to the company’s website.

Refined products are sold in the north, northeast and

southeastern coastal regions of China, as well as being

exported, according to the website.


Shares Decline


Shares of Sinopec fell as much as 3.4 percent to HK$6.77 in

Hong Kong trading and were at HK$6.86 as of 9:36 a.m. local

time. Its Shanghai traded stock slumped 3.4 percent to 4.88 yuan

as at 9:38 a.m. local time.


The company will maintain normal fuel supplies to customers

in the region from its other plants, Lv said. Sinopec operates a

refining and chemical facility in Shandong province at Zibo,

more than 130 miles west of Qingdao. The refinery can process

10.5 million tons a year, according to the company’s website.


The 249-kilometer Donghuang II pipeline, which Sinopec shut

following the leak, has a capacity of 10 million tons a year,

according to the company. That’s about 200,000 barrels a day. It

primarily ships crude from the Shengli oilfield to Huangdao

port, Lv said.


While crude imports to the Qingdao refinery will be

disrupted, the plant will not be shut completely because it

still has some oil and fuel inventories, according to Lv. The

complex also produces liquefied petroleum gas, polypropylene and

styrene, with a total output of more than 2 million tons a year,

according to the website.


Port Operations


Six oil vessels, including two supertankers with capacity

of 300,000 tons, were ordered for safety reasons to depart from

berthing facilities at Qingdao port, according to a press

release by the municipal government yesterday. The port had the

capacity to handle about 30 million tons of oil a year as of

2009, the government’s website showed. It was the fifth-busiest

container port in the country, according to October data from

the Ministry of Transport.


Port operations are running smoothly, according to a

spokesman for Qingdao Port Group Co., who asked not to be

identified when contacted by phone yesterday. The leak spread

across 3,000 square meters in Jiaozhou Bay and the Yellow Sea,

the Qingdao Municipal People’s Government Information Office

said on its microblog.


China this month pledged to allow more private investment

in state-controlled industries as part of the biggest package of

reforms since the 1990s.


‘Learn Lessons’


The country will improve work safety and “learn lessons”

from the blast, China Central Television reported Xi as saying.

The accident investigation should be fast-tracked and

responsibility established, Xi said.


China uses its big three oil companies, including Sinopec,

to control domestic fuel prices and secure energy supplies from

overseas to meet the burgeoning needs of an economy that

expanded 7.7 percent last year.


Sinopec reported a profit increase in the third quarter as

a new policy helped it and PetroChina Co. to raise fuel prices,

foreshadowing the government’s plan to reduce state intervention

in the economy.


To contact the reporters on this story:

Sarah Chen in Beijing at

schen514@bloomberg.net;

Ramsey Al-Rikabi in Singapore at

ralrikabi@bloomberg.net


To contact the editor responsible for this story:

Alexander Kwiatkowski at

akwiatkowsk2@bloomberg.net



Enlarge image
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Sinopec Explosion


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AFP/Getty Images


Workers clean up oil on a river of the Jiaozhou Bay after an oil pipeline exploded at the China Petroleum Chemical Corp. plant in the city of Qingdao, east China’s Shandong province, on November 23, 2013.


Workers clean up oil on a river of the Jiaozhou Bay after an oil pipeline exploded at the China Petroleum Chemical Corp. plant in the city of Qingdao, east China’s Shandong province, on November 23, 2013. Source: AFP/Getty Images



Enlarge image
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Sinopec Explosion


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ChinaFotoPress via Getty Images


Workers collect oil after a pipeline exploded at a China Petroleum Chemical Corp. plant on November 23, 2013 in Qingdao, China.


Workers collect oil after a pipeline exploded at a China Petroleum Chemical Corp. plant on November 23, 2013 in Qingdao, China. Source: ChinaFotoPress via Getty Images



Sinopec Qingdao Refinery Disrupted as Blast Death Toll Rises

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