PetroChina cuts crude runs as coronavirus hits demand

Chinese state-run energy giant Sinopec, Asia’s largest refiner, is cutting its throughput by 600,000 bpd, or 12 percent of its average crude runs, its deepest reduction in more than a decade. (AFP)
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Updated 11 February 2020
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PetroChina cuts crude runs as coronavirus hits demand

  • State refiner in talks with suppliers such as Saudi Arabia and UAE about deferring cargo loadings

SINGAPORE: PetroChina, China’s second-biggest state refiner, plans to reduce its crude throughput by 320,000 barrels per day (bpd) this month versus its original plan as the coronavirus hits fuel demand, a company official told Reuters on Monday.

PetroChina’s planned February cut is equivalent to about 10 percent of the refiner’s average production rate of about 3.32 million bpd.
This would bring total production scalebacks by state refiners, include Sinopec Corp. and China National Offshore Oil Company, to about 940,000 bpd for this month.

The cuts from PetroChina are likely to be deepened to 377,000 bpd in March, said the senior company official with direct knowledge of the matter. He declined to be named as he is not authorized to speak to the press.

Reuters reported last week that Sinopec Corp, Asia’s largest refiner, is cutting its throughput this month by 600,000 bpd, or 12 percent of its average crude runs, its deepest reduction in morer than a decade. Independent Chinese refiners in Shandong, meanwhile, have slashed output to below half their capacity.

“The production cuts are mostly on refineries in northeast and north China, where demand is hit harder than in the western parts of the country,” said the PetroChina official.

PetroChina started the production cuts at the beginning of the month, but deepened them on Monday, the official said.

PetroChina did not immediately respond to a request for comment.

PetroChina is talking with its key long-term suppliers such as Saudi Arabia, Kuwait and the UAE about possibly deferring cargo loadings or trimming loading volumes, the official said, without giving further details.

“We’re monitoring the market on a daily basis. But from what we’ve observed now, there seems little chance for a fuel demand recovery in March,” the official said.


Saudi-French cooperation to localize veterinary vaccine manufacturing

Updated 16 sec ago
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Saudi-French cooperation to localize veterinary vaccine manufacturing

RIYADH: In the presence of sector leaders, the National Livestock and Fisheries Development Program signed a memorandum of understanding with French company Ceva under the patronage of Minister of Environment, Water and Agriculture Abdulrahman bin Abdulmohsen Al-Fadhli, who also chairs the program’s board.

The agreement aims to localize vaccine manufacturing, transfer technology and technical expertise, and expand the industrial and commercial production of veterinary vaccines across the Kingdom.

According to the MoU, the two parties will work to achieve high efficiency in mass production scale-up and establish a clear path for sustainable commercial operation that meets the needs of the local and national market, as well as strengthen the biosecurity and food security system.

The MoU also includes the development and modernization of messenger RNA vaccine technologies, along with joint research and development of a Middle East Respiratory Syndrome vaccine for camels. This involves designing, evaluating, and developing vaccines specifically tailored to combat the virus.

The agreement also covers the development of a rabies vaccine and related solutions, as well as supporting national efforts to control the disease through vaccine provision, capacity building, and the implementation of integrated prevention strategies.

The collaboration between the program and Ceva aims to meet the needs of the poultry vaccine market in the Kingdom, currently estimated at around SR750 million ($199 million).

The company will work to cover approximately 30 percent of this market with an initial investment of around SR250 million.

With continued government support for poultry projects and increased production in the sector, the market is expected to grow at a rate exceeding 10 percent annually, reaching approximately SR1.25 billion by 2030.

The addition of the world’s leading poultry vaccine manufacturer to Biotech Park highlights the program’s key role in developing new industries within the livestock and fisheries sector.

It also highlights the program’s commitment to building international partnerships with global companies, organizations, research centers, and universities to support advanced biotechnology industries and attract high-quality investments. It also seeks to create new economic sectors based on biotechnology, enhance veterinary health security, and support the sustainable economic development of the livestock sector, as well as empower national and emerging companies and provide advanced research and industrial infrastructure.

This will solidify the Kingdom’s position as a global hub for biotechnology industries and the development of national capabilities.

Ceva is the first international partner to join Biotech Park, the future veterinary biotechnology city launched by the program in Dhurma Governorate. The city is the world’s first specialized and fully integrated hub for veterinary biotechnology, serving as a benchmark for sector development and a platform supporting markets across the Kingdom, the Gulf, the Middle East, Africa and beyond.

The signing of Ceva is a significant step, given its position as the world’s leading manufacturer of poultry vaccines and medicines, and one of the most prominent international companies in the field of biotechnology.

The MoU aims to localize the veterinary vaccine industry, ensuring its compatibility with the strains of poultry diseases prevalent in Saudi Arabia. This includes the transfer of technology and technical expertise from Ceva, along with the implementation of specialized training programs to guarantee that manufacturing facilities comply with international Good Manufacturing Practice standards.