Oil Refining Production and Operation

Crude oil runs grew.Growth in crude oil runs was realized through increasing oil products export and meeting the diversified demands for chemical feedstock and oil products at home. In 2017, we processed in total 240 million tons of oil with an increase of 1.2%, produced 151 million tonnes of oil products with an increase of 1.0%.

Product slate continued to optimize.Production scheme was adjusted and optimized. We adopted LTAG technology and FCC catalyst for boosting gasoline production to produce more gasoline, optimized hydrocracking and jet fuel hydrotreating units to increase jet fuel production, enhanced the coordination between production and marketing to explore markets,adjusted product slate based on market conditions and profitability, and achieved remarkable results in efficiency enhancement. Gasoline production increased by 1.2% for the whole year and jet fuel production increased by 5.6%. Diesel to gasoline ratio was 1.17:1, lowering by 0.02 unit.

Quality upgrading completed smoothly.In 2017, we pushed forward the demanding quality upgrading project despite multiple frequencies in addition to multiple standards. New projects such as diesel hydrogenation in Zhenhai subsidiary, catalytic diesel conversion in Changling and Anqing subsidiaries went into smooth operation. 4 diesel hydrogenation units were added a second reactor as scheduled. We optimized production scheduling and product blending and strengthened the coordination between production and sales. Quality upgrading was finished smoothly and ahead of schedule: January 1, 2017 saw Beijing Ⅵ quality upgrading of vehicle gasoline and diesel; national Ⅵ quality upgrading of vehicle gasoline and diesel was realized in “2+26” (Beijing, Tianjin and other 26 cities in North China) cities on July 1, 2017; sulfur content of regular diesel was lowered to 50ppm and 10ppm respectively in April and September. All above ensured Sinopec's continued leadership in oil products quality in China.