Sinopec to Cut Distillates Supply to SW China by 8.3% in June

Sinopec plans to transit a total of 550,000 tonnes of gasoline and gasoil to southwest China’s Guangxi, Guizhou and Yunnan through the Southwest Oil Product Pipeline in June, down by 8.3% from May, a company source said.

Gasoline supply is at 120,000 tonnes, flat compared with the previous month, but gasoil supply will decline by 10.4% to 430,000 tonnes, according to the source.

The oil giant reduced the volume to ease inventory pressure in southwest China as bearish market outlook affected its sales there, the source added.

Sinopec Southwest Oil Product Pipeline starts from Maoming city in Guangdong province and ends at Kunming of Yunnan province, passing through 37 cities and towns within Guangdong, Guangxi, Guizhou and Yunnan. Stretching out 1,691km in its full length and linking up 19 stations, it is the largest-scaled and longest oil products pipeline in the country by far.