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Society

Dalian oil spill cut oil supplies to southern China

(Xinhua)
Updated: 2010-07-20 21:18
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SHANGHAI - The oil pipeline blasts in northeastern port city of Dalian Saturday have affected refined oil supplies in southern China but oil prices there will not be impacted upon, industry analysts said Tuesday.

Chinese petroleum companies' tankers have reduced oil shipments from Dalian to southern Chinese provinces because the port has been partially closed in wake of the accident.

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Two crude pipelines exploded in Xingang Port in northeast China's Dalian City last Friday evening. The blasts caused an oil slick and authorities are controlling maritime traffic during the cleanup.

PetroChina's north-to-south oil shipments from Dalian port -- usually 30,000 to 50,000 tonnes per day -- have been affected, said Chu Jiewang, an analyst at Shanghai-based C1 Energy Co. Ltd., a leading oil industry information provider.

Southern China refineries are reducing operations and are mostly processing inventory while at least three China National Petroleum Corp. (CNPC) subsidiaries have reduced sales of refined oil in southern provinces, Xinhua was told.

The Dalian oil reserve is at the heart of northeast China's crude oil production base and it is one of China's largest oil industry bases while Dalian Port is China's second largest port for crude oil imports.

Analysts said the oil reserves in southern Chinese provinces are ample and that the impact of reduced shipments is limited so far.

"The inventories can last for ten days so the oil price in southern provinces has remained stable," Chu said.

He said the slowing in shipments may give southern provinces a chance to reduce excessive stockpiles.

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