Chinese independent refiners are widening their international scope beyond just their home market, with Shandong Hengyuan Petrochemical buying Shell’s majority stake in Malaysia’s 156,000 b/d Port Dickson refinery. The sale of the 51pc interest to Hengyuan is valued at $66.3mn and is expected to be completed this year. Shell had been considering selling its shareholding in the refinery since January last year, because overcapacity has weighed on refining margins in southeast Asia. Hengyuan is expected to invest in upgrades at the refinery, which will allow the plant to produce fuel that meets the EU’s Euro 4 and Euro 5 vehicle emissions specifications. But it has yet to indicate how much it will invest.
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