China's key Dalian oil port in the northeast of the country is currently closed after two crude pipelines exploded on 16 July.
A pipeline linking the port area to state-owned oil firm CNPC's 3.8mn bl bonded storage facility exploded shortly after a very large crude carrier (VLCC) offloaded its cargo. The vessel was delivering a consignment of Venezuelan Castilla and Zuata crude blends for CNPC's asphalt plants and independent refineries in Shandong province.
The blast triggered a secondary explosion at a smaller adjacent pipeline. The resulting fires burned for 15 hours before being contained by firefighters. An unknown quantity of crude leaked into the sea during the incident, according to Chinese state-run media. No casualties were reported.
Dalian port's 30,000t VLCC berths are unlikely to reopen for some time. But shipments via 10,000t Aframax carriers are likely to resume in the near future, traders say.
The 200,000 b/d export-oriented joint-venture Wepec refinery operated by CNPC affiliate PetroChina has cut run rates as a result of the incident, according to plant officials. But PetroChina's 410,000 b/d Dalian refinery is unlikely to see any immediate impact since it has around two weeks' of crude feedstock in storage. Both refineries could be able to draw on reserves at PetroChina's 18.7mn bl Dalian strategic petroleum reserve facility if commercial supplies run short.
A pipeline linking the port area to state-owned oil firm CNPC's 3.8mn bl bonded storage facility exploded shortly after a very large crude carrier (VLCC) offloaded its cargo. The vessel was delivering a consignment of Venezuelan Castilla and Zuata crude blends for CNPC's asphalt plants and independent refineries in Shandong province.
The blast triggered a secondary explosion at a smaller adjacent pipeline. The resulting fires burned for 15 hours before being contained by firefighters. An unknown quantity of crude leaked into the sea during the incident, according to Chinese state-run media. No casualties were reported.
Dalian port's 30,000t VLCC berths are unlikely to reopen for some time. But shipments via 10,000t Aframax carriers are likely to resume in the near future, traders say.
The 200,000 b/d export-oriented joint-venture Wepec refinery operated by CNPC affiliate PetroChina has cut run rates as a result of the incident, according to plant officials. But PetroChina's 410,000 b/d Dalian refinery is unlikely to see any immediate impact since it has around two weeks' of crude feedstock in storage. Both refineries could be able to draw on reserves at PetroChina's 18.7mn bl Dalian strategic petroleum reserve facility if commercial supplies run short.
