Higher refining costs are weighing on Chinese state-controlled oil firm Sinopec, as it seeks to cut debt and generate cash to fund its working capital. Sinopec needs to spend about 20bn- 30bn yuan ($3.2bn-4.8bn) on refinery upgrades to meet higher vehicle emission standards this year. It is estimated to have spent an average Yn20bn/yr in the past 10 years upgrading and installing desul- phurisation units at its refineries. But it may have to accelerate this spending to meet tougher new guidelines taking effect in 2017, part of new rules issued by a government concerned about the effect of worsening air pollution on public opin- ion (WPA, 8 February, p11).
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