Oil storage and transportation has always been a core business of Sinopec Kantons (the Company). Huade Petrochemical Co., Limited (Huade Petrochemical) - the wholly owned subsidiary of the Company - was established in as early as 1994. Since its start of operation in 1997, Huade Petrochemical has accumulated rich experiences in terms of crude terminal handling, oil storage and transportation. Huade Petrochemical has also set up an all-around ERP internal control system and a unique management scheme which is in accord with HSE and EMS systems, cultivating a staff team that possess good qualities and working style, high skills and innovative management.
In order to further enhance the Company’s storage and logistics business, so as to realize the development goal formulated by the Board, i.e. to build the company into a world-class petrochemical storage and logistics company, the Company acquired 50% shares in Zhanjiang Port Petrochemical Jetty Co. (Zhanjiang Petrochemical) in October 2011, and in October 2012, the company acquired 50% shares in Ningbo Shihua Crude Oil Terminal Company Ltd. (Ningbo Shihua), 50% shares in Qingdao Shihua Crude Oil Terminal Company Ltd. (Qingdao Shihua), 50% shares in Rizhao Shihua Crude Oil Terminal Company Ltd. (Rizhao Shihua), 50% shares in Tianjin Port Shihua Crude Oil Terminal Company Ltd. (Tianjin Shihua) and 90% shares in Tangshan Caofeidian Shihua Crude Oil Terminal Company Ltd. (Caofeidian Shihua).
By far, the Company is the largest petrochemical storage and terminal company in China. It boasts 38 berths. Among them, there are 13 crude oil berths of 300,000 tons and above, accounting for more than half of the VLCC crude oil berths inChina. The total handling capacity of the seven terminals is about 300 million tons per year. The number of terminals ranks first in China, and the inventory of various oil products is about 3.4 million cubic meter. It is worth mentioning that the 450,000-tonnage terminal of Ningbo Shihua is the largest crude terminal in China and even the whole Asia.
The seven domestic terminal companies owned by the Company locate evenly on China’s coastline, occupying the estuaries of the most dynamic Yangtze River Delta, Pearl River Delta and Bohai-Rim Economic Circle. They also connect with most of the pipeline network of Sinopec’s coastal and riverside refineries, while at the same time, provides effective handling and transition services of crude oil and liquid chemicals for local refineries.