Sinopec: Halting Iran Oil Imports Will Hurt Refineries

Sinopec: Halting Iran Oil Imports Will Hurt RefineriesSinopec: Halting Iran Oil Imports Will Hurt Refineries

A senior executive at Sinopec, China’s largest refiner, said on Monday some of its refineries will be negatively affected if it stops importing Iranian crude, in the first public comment by a senior Chinese oil executive about Washington’s decision to resume sanctions on Iran.

“Some of our downstream refineries were designed for refining Iranian oil,” said Huang Wensheng, vice president of the company formally known as China Petroleum & Chemical Corp, Reuters reported.

“If we stop imports, the benefits would be affected.”

The comment comes after Reuters reported last week that state oil trader Zhuhai Zhenrong Corp and Sinopec have taken measures to safeguard supplies, activating a clause in long-term supply agreements with the National Iranian Oil Company that allows them to use vessels owned by the National Iranian Tanker Company.

Speaking during a news conference, the day after Sinopec reported first-half bumper earnings, Huang said the ongoing trade spat between US and China will have a limited impact on the company’s profits.

Huang said Sinopec expects its crude oil output to remain stable over the next three years, after crude oil production declined 1.6% in the first half of 2018.

"Sinopec also sees significant growth in natural gas production," he said.

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