An extra 22.6 million bbl of crude oil storage capacity has been brought online by China’s Hengli Petrochemical at its Dalian site, in the second phase of tank development.

The new tanks began operating at the end of June. The expansion will bring the total capacity to 37.8 million bbl, which will help to support rising import demands for Hengli’s 400,000 bpd Changxing refinery.

Hengli increased its crude purchases when prices dropped earlier this year to lower feedstock costs, and the new tanks will help the company to optimise its crude purchases.

The company has an integrated operating model, with 98% of its ethylene feedstock supplied by its own 1.5 million tpa cracker at Changxing, which it says has helped it to cope with the impact of the COVID-19 pandemic.

It is adding a fifth purified terephthalic acid (pta) unit in 2020, taking its capacity to 11.6 million tpa, making it the world’s second largest producer behind Yisheng, another Chinese firm.

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19th August 2020