Do you like it? Shandong local refining and heating group formed Shandong Refining and Chemical Group

The aforementioned "Reply Letter" stated that the establishment of Shandong Refining and Chemical Energy Group Co., Ltd. to promote the integration, reorganization, transformation and development of local refining enterprises in the province is a major measure to accelerate the conversion of new and old driving forces in the province's petrochemical industry. The group development of the refining and chemical industry "is conducive to changing the single advantage of an enterprise into the joint development advantage of the group, and accelerating the development of refining and chemical integration, large-scale equipment, clean production, high-end products, and enterprise park development in the local refining industry. ”The group's establishment principle is to be initiated by the core backbone refining enterprises and operate in a market-oriented manner. * * Provide guidance and support.

In July this year, the Economic Information Daily cited data provided by Li Xiangping, president of the Shandong Provincial Refining and Chemical Industry Association, saying that Shandong's local refineries are huge, with processing capacity and main business income accounting for more than 70% of the country's local refineries, and the crude oil processing volume of local refineries accounts for 8% of the country's total. In 2016, Shandong Province's local refineries achieved main business income of 492.5 billion yuan, profits and taxes of 31.8 billion yuan, and profits of 13.8 billion yuan, an increase of 21.7%, 79.1%, and 60% respectively over the previous year. In the past two years, Shandong's local refineries, especially those that have obtained the right to use imported crude oil, have indeed lived a good life. Previously, because imported crude oil was not allowed to be used, domestic oil sources were controlled by central enterprises for a long time, and local refineries were faced with the dilemma of "it is difficult for a clever woman to make a meal without rice". February 2015, * * The National Development and Reform Commission issued the "Notice on Issues Concerning the Management of the Use of Imported Crude Oil", allowing qualified local enterprises to use imported crude oil on the premise of eliminating a certain scale of backward production capacity or building a certain scale of gas storage facilities. In July of the same year, the Ministry of Commerce issued the "Notice on Crude Oil Processing Enterprises' Application for Non-State Trade Import Qualifications", clarifying that qualified crude oil processing enterprises can obtain crude oil import qualifications, further opening the door for private enterprises to import crude oil. The above two qualifications complement each other. If a local refinery that has obtained the right to use imported crude oil obtains non-state-operated trade import qualifications, it will no longer need to import through a state-operated import agency. The substantial growth in profits of Shandong local refineries in 2016 was precisely based on the release of benefits from policy dividends. As of July this year, 32 domestic local refineries with the right to use imported crude oil have been officially approved and entered the public notice period. Among them, a total of 25 local refineries in Shandong have obtained the right to use imported crude oil. According to Securities Daily, crude oil imports by Shandong local refining companies increased by 32% year-on-year in 2016, accounting for 65% of Qingdao Port’s total crude oil imports. Nearly 50% of the crude oil used by Shandong local refining companies was landed at Qingdao Port, and tankers were once seen lining up to enter the port. However, according to statistics from market agencies, not all import quotas for local refineries were used in full in 2016. In April this year, the application for the right to use imported crude oil came to an end. * * The National Development and Reform Commission announced that starting from May 5, it will stop accepting declaration materials related to the use of imported crude oil by crude oil processing companies. For enterprises that have submitted complete application materials as required before May 4, the National Development and Reform Commission will continue to carry out follow-up verification and evaluation. Dilian people call this move "a return to the hard days of eating coarse grains." Coupled with the suspension of refined oil export quotas for local refineries this year, local refineries lack direct retail terminals amid the slowdown in domestic refined oil consumption, and their profits have been suppressed. The increased costs caused by oil product upgrades have also increased the burden on local refining companies.

The voice of establishing Shandong Refining and Chemical Group is gradually rising. However, industry analysts pointed out to The Paper that due to the large number of local refinery companies in Shandong and the huge differences in their financial status, it is difficult to truly integrate them. According to Xinhua News Agency, at the 2017 China Petroleum Market and Trade Summit held in Qingdao in July this year, the chairman of the China (Independent Refinery) International Petroleum Procurement Alliance * Zhang Liucheng, vice president of Dongming Petrochemical, said that in view of the current bottleneck problems such as dispersed production capacity and single product structure encountered in the development of Shandong's local refining, it is recommended to optimize the allocation of raw materials, logistics, funds, products, etc. of local refining enterprises through mergers and reorganizations, equity exchanges and the establishment of Shandong Refining and Chemical Group, achieve large funds and large logistics, and improve the industry's core competitiveness and voice. Zhang Liucheng believes that the large-scale refining and chemical enterprises will be the future development trend of the industry. Shandong Refining should gradually become a large enterprise group through mergers and adopt the "integrated development of upstream and downstream industries" model in order to survive in the fierce market competition. He suggested that each local refining company should use the crude oil usage quantity, import quota and atmospheric and vacuum unit capacity evaluation price obtained by each local refining company to invest in the Shandong Refining and Chemical Group. In terms of the formation method, he proposed that enterprises in Shandong Province that have obtained the right to use imported crude oil should be the sponsors, and at the same time, state-owned capital or industrial investment funds should be introduced to establish it in a mixed ownership manner. According to Qilu Evening News, the topic of establishing Shandong Refining and Chemical Group was mentioned by Dongming Petrochemical Chairman Li Xiangping more than once in various internal meetings. A "Feasibility Analysis Report on Establishing Shandong Refining and Chemical Group" once elaborated on the internal and external environment for the survival of local refining enterprises, the development status and existing problems of Shandong local refining, the necessity and ideas for establishing a refining and chemical group, etc. According to the report, the newly formed group company will maintain the same management team of each member company, the same tax payment channels, and the management system of independent operation and responsibility for profits and losses, and focus on promoting coordination in five aspects including development planning, raw material procurement, oil transportation, sales channels, and retail terminal management. In fact, similar "group-hugging" behavior has sprouted as early as early 2016. In February 2016, the China (Independent Refinery) Petroleum Purchasing Alliance was formally established, jointly initiated by 14 local refineries in Shandong Province and two independent refineries outside the province. This "purchasing alliance" uses Pacific Commercial Holdings Co., Ltd., a subsidiary of Dongming Petrochemical, as a platform to organize local refining companies with imported crude oil quotas to purchase imported crude oil in a centralized manner. The main purpose is to strengthen the voice and bargaining power in the international market. According to the aforementioned "Reply Letter" from the Shandong Economic and Information Technology Commission, Shandong Refining and Chemical Energy Group Co., Ltd. should focus on improving industrial concentration and comprehensive competitiveness, taking the comprehensive business adjustment and reorganization with strong correlation and unity as the entry point, making better use of both international and domestic market resources, effectively advancing key business operations in an orderly manner, and giving full play to the positive effects of joint reorganization. However, some market participants suggested that the refining and chemical group may once again become a loose organization similar to the independent mining alliance. How does Shandong Dilian integrate resources? How to coordinate the interests of various shareholders? Due to the limited details disclosed in the Reply, the answers to the above questions are still unknown.

The newly established group will be a joint-stock company. Regarding who will build it and how to build it, the "Reply Letter" stated that Shandong Refining and Chemical Group will be jointly established by key refining companies such as Shandong Dongming Petrochemical Group Co., Ltd. (hereinafter referred to as "Dongming Petrochemical") and Shandong Qingyuan Group Co., Ltd. (hereinafter referred to as "Qingyuan Group") to form a joint-stock group company with diversified investment entities. 　　Among them, Dongming Petrochemical's "big brother" is obvious. As the largest local refining company in Shandong Province, Dongming Petrochemical's top management has now "taken over" the Provincial Refining and Chemical Industry Association, with Chairman Li Xiangping as the president. Last year, the company also joined forces with 15 local refineries to establish the China (Independent Refinery) International Petroleum Purchasing Alliance, using overseas trading companies to uniformly import crude oil. 　　According to media reports, companies such as Jincheng Petrochemical and HSBC Petrochemical are also on the shareholder list, but the list of shareholders has not yet surfaced. However, the "Reply Letter" has set out a "hard lever" for the investment in Shandong Dilian Group, that is, it has the qualification to use imported crude oil. 　　It is understood that there are currently about 40 local refining companies in Shandong Province, 22 of which have the qualification to use imported crude oil, accounting for 72.9% of the companies in the country that have obtained this qualification. In addition, Shandong Yuhuang Shengshi Chemical Co., Ltd., Shandong Qingyishan Petrochemical Technology Co., Ltd., and Shandong Xintai Chemical Group Co., Ltd. have currently passed the acceptance inspection and are yet to be * * Ministry approval.

　Team up or be included? 　　Shandong's local refining enterprises are small in scale and at a cost disadvantage. 　　According to previous statistics by some media, the refining capacity of the province's local refineries is equivalent to South Korea's refining capacity, but the average production capacity of a single company is less than 3.5 million tons. When prices and taxes are in place, local refineries are at a competitive disadvantage compared with state-owned enterprise refineries and seven new refineries in the seven major bases with a production capacity of 10 million to 40 million tons. 　　In this regard, Ding Xu, an analyst at Longzhong Petrochemical Network, analyzed that with the deepening of oil and gas reform, the refining and chemical industry is bursting with vitality, while local refining companies are increasingly under pressure. Under this background, capital integration is the general trend. Only by forming a joint force for warmth can we gain space in the competition with national refining and chemical groups. 　　In this regard, the "Reply Letter" also requires that Shandong Refining and Chemical Group should focus on improving industrial concentration and comprehensive competitiveness, take the comprehensive business adjustment and reorganization with strong correlation and unity as the entry point, and make better use of both international and domestic market resources to lay a solid foundation for further joint reorganization and group development of the industry. 　　Shandong local refineries have been accelerated by large capital in the past two years. Since the end of last year alone, four companies including Gaoqing Hongyuan Petrochemical Co., Ltd., Shandong Shida Technology Petrochemical Co., Ltd., Shandong Boxing Tianhong New Energy Chemical Co., Ltd., and Dongying United Petrochemical Co., Ltd. have been acquired by local state-owned enterprises or national leading refining and chemical companies.

　It is planned to establish 6,000 gas stations in five years. Not only are upstream refining companies contemplating restructuring and integration, but also on the downstream sales side, Shandong is also planning a big move. It plans to register "Zhongan Petroleum" as a unified brand for the province's refined oil sales through Shandong Petrochemical Co., Ltd., a subsidiary of Shandong Dongbo Holdings Co., Ltd., and establish a local refined oil sales terminal alliance to integrate local refinery gas stations. 　　It is understood that as early as 2014, Shandong Province issued the "Implementation Plan for the Transformation and Upgrading of the Local Refining Industry", proposing to guide and support key enterprises and existing private gas stations to expand refined oil sales channels through mergers, joint ventures, joint ventures, etc. 　　According to the plan, these gas stations will uniformly use the "Zhongan Petroleum" brand, and unify service specifications, quality standards, procurement and distribution, and payment methods to create a high-end service brand for retail terminals in Shandong's local petrochemical industry. The oil sales alliance will develop 2,000 gas stations with a unified image of Shandong Refining and Chemical Industry within three years, and reach an operating scale of 6,000 within five years. 　　In addition, Shandong is also actively building oil pipelines for crude oil transportation from oil terminals to local refining companies. “During the 13th Five-Year Plan period, 7 new crude oil pipelines and 7 refined oil pipelines will be built in the province, and Shandong local refining will usher in the era of large-scale pipeline transportation. Economic Herald-Shandong Finance Network

Don't threaten state-owned enterprises, otherwise they will be shut down.

Zhang Liucheng: Build Shandong Refining and Chemical Group to enhance the competitiveness of local refining market 2017.7.7 China Financial Information Network Core Tips: Chairman of China (Independent Refinery) International Petroleum Purchasing Alliance * Zhang Liucheng, vice president of Dongming Petrochemical, said on the 6th that in view of the current bottleneck problems such as dispersed production capacity and single product structure encountered in the development of Shandong's local refining, it is recommended to optimize the allocation of raw materials, logistics, funds, products, etc. in the local refining enterprises through mergers and reorganizations, equity exchanges and the establishment of Shandong Refining and Chemical Group, achieve large funds, large logistics, and improve the core competitiveness and voice of the industry. Xinhua News Agency reporter Zheng Bin

Qingdao ( CNFIN.COM / * NHUA08.COM )--Head of China (Independent Refinery) International Petroleum Purchasing Alliance * Zhang Liucheng, vice president of Dongming Petrochemical, said on the 6th that in view of the current bottleneck problems such as dispersed production capacity and single product structure encountered in the development of Shandong's local refining, it is recommended to optimize the allocation of raw materials, logistics, funds, products, etc. in the local refining enterprises through mergers and reorganizations, equity exchanges and the establishment of Shandong Refining and Chemical Group, achieve large funds, large logistics, and improve the core competitiveness and voice of the industry. Zhang Liucheng made the above statement at the 2017 China Petroleum Market and Trade Summit held in Qingdao.

Shandong is the region with the highest concentration of local refining companies in my country, with a refining capacity of nearly 200 million tons, accounting for more than a quarter of the country's total refining capacity. Among them, the average refining capacity of 36 major refineries is 3.44 million tons, and only 10 have a refining capacity of more than 5 million tons, which are generally small in scale. The main units such as atmospheric and vacuum pressure, catalysis, and coking are small in size and do not form economies of scale. The production costs such as energy consumption and maintenance are higher than those of the main refinery. At the same time, the added value of deep-processed products such as olefins, alkanes, and aromatics supported by local refining enterprises is low, and the investment in high value-added chemical products is insufficient. The layout of the entire industry chain needs to be strengthened. By 2020, multiple 10-million-ton local refining and chemical projects including Zhejiang Rongsheng Petrochemical, Jiangsu Shenghong Petrochemical, and Dalian Hengli Petrochemical will be put into operation. In addition to multiple projects of the three central petroleum enterprises, the domestic overcapacity of refining will become increasingly serious, and Shandong's scattered local refineries will face huge competitive pressure. Zhang Liucheng said that in addition to the problem of scale dispersion, the problems faced by local refineries also include: Lack of terminal sales channels makes it difficult to obtain retail profits ； Scale expansion is restricted by policies related to crude oil imports ； Logistics organization needs unified scheduling and coordination ； There are shortcomings in the loading and unloading capacity of crude oil import ports. Zhang Liucheng believes that the large-scale refining and chemical enterprises will be the future development trend of the industry. Shandong Refining should gradually become a large enterprise group through mergers and adopt the "integrated development of upstream and downstream industries" model in order to survive in the fierce market competition. He suggested that each local refining company should use the crude oil usage quantity, import quota and atmospheric and vacuum unit capacity evaluation price obtained by each local refining company to invest in the Shandong Refining and Chemical Group. After the establishment of the group company, the management system of each member company's operating team, tax payment channels, and independent operations that are responsible for their own profits and losses remains unchanged. It focuses on promoting coordination in five aspects including development planning, raw material procurement, oil transportation, sales channels, and retail terminal management. In terms of the formation method, he proposed that companies in Shandong Province that have obtained the right to use imported crude oil should be the sponsors, and state-owned capital or industrial investment funds should be introduced at the same time, and it should be established in a mixed ownership manner. He also said that Qingdao is my country's largest port for crude oil imports in the past two years. It has good infrastructure conditions and port resources, and is the best choice for setting up a refining and chemical group.