November 09, 2020 [Argus Media] – Chinese private-sector firm Rongsheng has started trial runs at a 400,000 b/d expansion of its ZPC refinery in Zhejiang, which will take total capacity to 800,000 b/d.

Rongsheng held a ceremony to mark the start of the refinery’s second phase yesterday. ZPC will add two 200,000 b/d crude distillation units (CDUs) in the second phase expansion, the second of which is scheduled to start trial runs in 2021.

The second-phase units are designed to produce 88,000 b/d of gasoline, 32,000 b/d of diesel and 63,000 b/d of jet fuel. The complex is geared towards producing feedstocks for Rongsheng’s petrochemical operations.

ZPC was awarded a 400,000 b/d non-state crude import quota for 2020, enough to cover the nameplate capacity of its first phase. The Chinese government today issued a total of 4.88mn b/d of non-state crude import quotas for 2021, up by 21pc from this year, although a company breakdown is yet to be announced.

Rongsheng in October purchased about 10mn bl of Mideast Gulf crude for loading and arrival across December and January, ahead of the second-phase start-up.

ZPC is based on Yushan island, one of multiple islands in the emerging oil hub of Zhoushan on China’s east coast. It operates a 300,000t crude terminal on Waidiao Island and the 800,000 b/d Waidiao-Mamu-Yushan crude pipeline. Another new 300,000t crude terminal is operational on Huangzeshan island, while ZPC is also planning an additional 800,000 b/d undersea crude pipeline connecting Huangzeshan and Yushan island.

ZPC operates 3mn m³ of crude storage at Mamu and 1.6mn m³ on Yushan island, as well as 1.9mn m³ of operational storage for products. It is adding another 1mn m³ of oil and chemical product storage capacity for the second-phase expansion.

The company is planning to build more facilities on nearby Jintang island, including several crude terminals and 8.5mn m³ of crude storage, over the next five years.

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