Asia/Pacific News
Fatal Explosion Disrupts Sinopec Operations
China Petroleum & Chemical Corp. (Sinopec) has cut production at some refineries and shifted cargos after a deadly pipeline explosion Friday, Reuters reports.
The accident at the port city of Qingdao killed 55 people.
Sinopec shut the Qingdao oil terminal for three days before reopening it Monday, creating a backlog of ships and forcing some cargoes to be diverted to other ports.
In the wake of the explosion, and a public backlash, the company said it would conduct safety checks across its 30,000 kilometers of pipelines.
Sinopec reduced production at its 200,000 barrel-per-day (bpd) Qingdao refinery and reduced lubricant output at another refinery in Jinan, but the company said its oil supply remained stable.
"Production has been cut but not on a big scale," one source said.
Refineries affected by the accident are using crude stockpiles or oil from other pipelines, but most stockpiles will only last about a week.
Yang Dongliang, director of the State Administration of Work Safety, said the explosion, which created a crater in a major street, represented a "serious dereliction of duty."
Seatrade Global reported that six very large crude carriers were ordered to leave the berthing facilities at Qingdao port following the explosion.
