Refining
Sinopec Corp. is China's largest petroleum refiner and refined products producer, with its total refining capacity ranking the 2nd in the world. Refineries of the Company are mainly located in China's southeast coastal area, middle and lower reaches of Yangtze River and North China, regions of the most dynamic and most developed economies in the country. These facilities are blessed by superior location, convenient transportation and robust market demand. Key oil products include gasoline, kerosene, diesel, lube oil, etc.

Refinery Configuration
The Company owns a wide spectrum of oil refining and processing facilities including atmospheric/vacuum distillation, FCC, hydrocracking, delayed coking, catalytic reforming, aromatic separation, hydrofining, alkylation, gas fractionation, asphalt, hydrogen production, desulfurization and sulfur recovery, etc. Some refineries also have solvent deasphalting, solvent dewaxing, wax molding, solvent refining, clay refining and lube oil hydrofining facilities, etc.

Refining Capacity
By end 2010, the Company’s total refining capacity reached 245 million tons, up by 6.97% over the previous year. Major production units, including FCC, delayed coking units, catalytic reforming units, hydrocracking units, hydrofining units for gasoline, kerosene and diesel, etc., achieved a certain increase of capacity compared with last year. The Company has pumped more technical support to enhance comprehensive refining capacity and that for processing low-grade crude. In 2010, Zhenhai 23 million tpa refining project and 1 million tpa ethylene integrated project, Gaoqiao 12.5 million tpa lube oil revamping project, Changling 8 million tpa refined products upgrading and the first stage revamping for processing low-grade crude were successively put into production, effectively increased the Company’s low-grade crude processing capacity and comprehensive strength of refining, chemical and lube oil production. The Company also gradually enhanced domestic high sulfur, high acidity, heavy crude processing capacity. With newly-built 8 million tpa atmospheric/vacuum distillation unit and 2 # catalytic MIP upgrading project, Qilu Company now is capable of processing 6 million tons of high sulfur, high acidity crude from Shengli oil field annually. Tahe 3.5 million tpa heavy crude upgrading project, newly-built, revamping and expansion of delayed coking facilities in Tahe, Cangzhou, Jinan, Guangzhou, etc,  effectively improved the Company’s capacity to deal with heavy and low-grade crude. The Company strengthened structural adjustment and realized National III standard gasoline upgrading at low cost. The Company successively applied S-Zorb technology to refineries in Guangzhou, Qilu, Cangzhou, Changling, etc, added catalytic gasoline selective hydrogenation facilities to Jiujiang, Jingmen, Qingjiang, Qingdao Petrochemical, Zhongyuan and Nanyang, and timely initiated the National III standard diesel quality upgrade. Therefore, the comprehensive refining capacity has been further perfected.

Currently, 11 refineries under Sinopec have a capacity of over 10 million tpa each, including:
Sinopec Zhenhai Refining & Chemical Co., Ltd. (ZRCC) has an overall processing capacity of 23 million tpa (ethylene capacity of 1 million tpa), of which 15 million tpa for high sulfur crude processing and 4 million tpa for high acidity crude processing. ZRCC has a 250,000 dwt terminal. It is one of Sinopec's major integrated high sulfur and high acidity crude refineries and petrochemical complex;

Sinopec Maoming Company has a crude processing capacity of 13.5 million tpa (ethylene capacity of 1 million tpa), of which 9 million tpa for high sulfur crude and 2 million tpa for high acidity crude, with a dedicated single-point mooring system (SPM) for crude vessels up to 250,000 dwt. It is not only a major refinery to process high sulfur and high acidity crude for the Company, but also an integrated refinery producing and supplying fuels, chemical feedstock and lubricants;

Sinopec Jinling Company has a crude processing capacity of 13.5 million tpa , of which 8 million tpa for high sulfur crude and 2 million tpa for high acidity crude, and 80% of the crude is transported through pipelines. It is one of the key refineries for high sulfur and high acidity crude processing;

Sinopec Guangzhou Company, with a crude processing capability of 13.2 million tpa, of which 8 million tpa for high sulfur crude and 2 million tpa for high acidity crude, is located in the center of the Pearl River Delta and enjoys convenient transportation. It is also one of the important refineries for high sulfur and high acidity crude processing;

Sinopec Tianjin Company, with a crude processing capacity of 12.5 million tpa (ethylene capacity of 1.2 million tpa), is located in Tianjin Binhai New Area. Crude processed in Tianjin is 100% imported. It is an important integrated refinery processing high sulfur crude with downstream chemical production.

Sinopec Shanghai Gaoqiao Company has a crude processing capacity of 12.5million tpa, of which 8 million tpa for imported high sulfur crude. After revamping project in 2010 for lube oil production, the shortage of lube oil feedstock as a result of high sulfur crude processing has been solved. It is a fuel-lubricant-chemical feedstock refinery that produces lube oil and petroleum wax;

Sinopec Fujian Refining and Petrochemical Company (FREP) has a crude processing capacity of 12 million tpa (ethylene capacity of 0.8 million tpa), of which 8 million tpa for imported high sulfur crude. FREP is a large petrochemical JV among Sinopec, Fujian Provincial Government, ExxonMobil and Saudi Aramco;

Sinopec Shanghai Petrochemical Co., Ltd. (SPC) has a crude processing capability of 12 million tpa, of which 8 million tpa for imported high sulfur crude. It owns its independent transportation infrastructures of ocean shipping, river wharfs, roads and railways and is one of the important integrated refining and chemical subsidiaries of Sinopec;

Sinopec Beijing Yanshan Company, with a crude processing capability of 11 million tpa, is a refinery producing fuels, lube oil and chemical feedstock;

Sinopec Qilu Company, adjacent to Shengli Oilfield and Qingdao Sea Port, has a crude processing capacity of 10.5 million tpa. It is one of the important refineries for high sulfur and high acidity crude processing;

Sinopec Qingdao Refining Corp., Ltd. has an overall crude processing capacity of 10 million tpa. It is the 1st ten-million-ton single-train refining project approved by the Chinese central government. It plays a significant role in optimizing refining layout, enhancing competitiveness of the refining business, and safeguarding market supply.

Refining Technologies
Owing to years of self-development on technologies, the Company boasts a strong and experienced team in refining, R&D, engineering and construction. The Company has a series of major refining technologies such as RFCC, Catalytic Reforming, high-pressure hydrocracking, medium-pressure hydrocracking, hydrofining, residue hydrodesulfurization and lube oil hydrotreating and reforming technologies, as well as relevant catalyst development and commercialization capabilities. The Company is a leader in China in terms of refining technologies. Some of its technologies have reached the international advanced level.

Product Quality
In 2010, the Company has maintained the quality of all the ex-work refining products at a 100% on-spec rate. All of its products have qualified the spot check held by technology supervision departments of the State, local governments as well as the Company its own.

roduction & Operation
The Company continued to reinforce management as well as scientific and technological advancement. Light products yield was increased by 0.25 percentage point y-o-y. Refining yield was increased by 0.30 percentage point y-o-y. Energy-consumption in refining was decreased by 3.08 units y-o-y. Processing loss was decreased by 0.08 percentage point y-o-y.

Summary of Operations of the Refining Segment:

In 2010, the segment's operating revenue was RMB15.86 billion, decreased by 42.4% over the previous year.

Oil Products
Sinopec Corp. is the largest oil products producer and supplier in China. Its major oil products include gasoline, kerosene, diesel, lube oil, chemical light feedstock, fuel oil, solvent oil, petroleum wax, asphalt, petroleum coke, sulfur, LPG, propylene, polypropylene and benzene.

The category and usage of major products are as follows:
Gasoline include 90#, 93#, 97#, and 98# motor gasoline, of which the quality can meet the National III，IV and the Europe V standard requirement. In addition to domestic supply, the Company also exports some of its gasoline products to Southeast Asia and Middle East.

Diesel varies in such grades as No.5, No.0, No.-10, No.-20 and No.-35, which quality can meet the National Ⅱ, III, IV and the Europe V standard requirement. Diesel products are used in many areas such as urban diesel automobiles, agricultural vehicles, railway transportation, waterway transportation, fishing, electric power, agricultural machinery, etc.

3# jet fuel complies with the national 3# jet fuel specification requirement. Aside from meeting the domestic needs, 3# jet fuel has been also exported to Hong Kong SAR and other regions. Six branches/subsidiaries of Sinopec Corp., namely Sinopec Zhenhai Refining & Chemical Co., Ltd., Sinopec Maoming Company, Sinopec Guangzhou Company, Sinopec Gaoqiao Company, Sinopec Shanghai Petrochemical Co., Ltd. and Sinopec Hainan Petrochemical Co., Ltd., all have proved themselves qualified in the annual quality guarantee inspection held by Hong Kong International Airport.

Lube oil (grease), categorized by usage into automotive lube oil, industrial lube oil, synthetic lubricant grease and metal working fluids (MWF), are widely applied to aviation, spaceflight, nuclear industry, electronics, military weapons, shipping, automobile, mechanical processing, metallurgy, refining, chemical, and instrumentation areas, etc. The Company's synthetic lubricant grease takes a leading position in the world. The specialty grease products have been successfully applied to China's Shenzhou-series spaceships and contributed to the successful launch of Shenzhou V, Shenzhou VI and Shenzhou VII manned-spaceships. The product was recognized by China Aerospace Science and Technology Corporation as the reliable product with stable performance.  As the designated oil for China's Antarctic research vessel Snow Dragon, Sinopec Great Wall lube oil has contributed to the success of China's Antarctic scientific research. The Company's various engine oil, hydraulic oil and gear oil were granted certificates from many international companies and rating institutions. Meanwhile, the Company has also established good cooperative relationship with many domestic automobile and motorcycle manufacturers, who use Sinopec Great Wall lube oil as ex-factory fill oil for new vehicles or service fill oil.

Asphalt products include heavy-traffic road asphalt (Class A and Class B, as newly regulated by the Ministry of Communications), modified asphalt, road petroleum asphalt, emulsion asphalt, anti-corrosion asphalt, asphalt for electric wire, water-proof asphalt, rubber asphalt, asphalt for painting, and insulation asphalt. The past few years witnessed a significant growth of the output of the Company's heavy-traffic road asphalt and modified asphalt which have been widely applied to motorways, urban public roads, airport runways, racing tracks and bridge pavements. After it was successfully applied at the racetrack in Shanghai International Circuit in 2004, Sinopec Donghai brand modified asphalt was chosen for the road pavement of Donghai Bridge, Shanghai Hongqiao Airport, Beijing Capital Airport Express, Yangtze River Tunnel-Bridge and other national key road construction projects. Meanwhile, the Company developed emulsified asphalt specialized in railway ballastless track, which has been applied in Wuhan-Guangzhou high-speed railway, Shijiazhuang-Taiyuan railway, Harbin-Dalian railway, Shanghai-Nanjing railway, etc.