Review: CNOOC and Sinopec gaming biodiesel Hainan pricing mechanism
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"This is almost the case at the end of the last few years." Li Qing, a resident of Haikou City, driving a diesel car, ran three gas stations today to add oil. Despite this, he is quite optimistic about the supply of diesel in the coming year.
“Now the Sinopec gas station in Chengmai has started using biodiesel,†Li Qing said. “If biodiesel can really enter the gas station in Hainan province or even the whole country, maybe the diesel supply will not be so tight. ."
Li Qing’s idea is not impossible to achieve. But before that, a key issue that must be solved is the biodiesel pricing mechanism.
People familiar with the matter said: "Although CNOOC accepted the purchase price proposed by Sinopec in the pilot project to promote biodiesel in Hainan, this does not mean that the (biodiesel) pricing plan proposed by Sinopec is accepted."
Pricing mechanism
It has been one month since Hainan officially tried to close the promotion of B5 biodiesel.
At the beginning of November, the first batch of biodiesel produced by CNOOC New Energy Investment Co., Ltd. began to be sold at the gas stations of 12 Sinopec in Chengmai and Lingao in Hainan Province.
With this pilot, CNOOC has become the only biodiesel producer in China to enter the automotive sector, and Hainan has become the first province in China to close the sale of biodiesel. According to the plan, the biodiesel produced by CNOOC will also enter the sales network of PetroChina this month. The promotion pilot will also be further expanded and eventually extended to the entire province of Hainan.
However, behind the smooth implementation of the pilot work, the issue of how to price biodiesel has once become the focus of consultations among all parties involved.
According to a person familiar with the matter: "The Hainan biodiesel's sales network into Sinopec is mainly driven by local governments and CNOOC. It is directly connected by CNOOC and Sinopec. Therefore, Sinopec's purchase price of biodiesel has no formal guidance from relevant state departments. It is agreed by several parties that it is probably multiplied by a certain price factor based on the ex-factory price of ordinary petroleum and diesel."
The person also stressed: "Although CNOOC accepted the purchase price in Hainan, at the recent biodiesel pricing mechanism review meeting, Sinopec's proposal was not passed."
At the review meeting, Sinopec clearly proposed its pricing principle. The first one is market-oriented operation. In the initial stage of operation, it is considered in accordance with B5 biodiesel (biodiesel and petroleum diesel are reconciled by volume ratio of 5:95). At the same time, learn from the mature operating experience of foreign countries, such as tax incentives, appropriate subsidies and financial support, and consider the interests of all aspects of the operation. The oil sales company receives biodiesel at a certain price coefficient, and combines with ordinary petroleum diesel to synthesize B5 biodiesel and sends it to various gas stations for terminal sales.
At the time of pricing, factors considered by Sinopec include: the nature of biodiesel, such as density, low temperature liquidity, etc., as well as the investment in the blending facilities of oil companies selling B5 biodiesel, the operating costs of the blending station, and the price of petroleum diesel.
Among them, the cost of the reconciliation is crucial because the blending of B5 biodiesel needs to be carried out at the mixing station. According to Sinopec people, 50,000 tons/year of BD100 biodiesel is required to be equipped with 5 stations with a scale of 200,000 tons/year, and its construction investment is as high as 56.5 million yuan. After the completion of the operation, the annual operation management of the five distribution stations will also require a expenditure of 1.5 million yuan.
Taking these factors into consideration, Sinopec finally gave a calculation formula for the highest receiving price (to the factory price) of biodiesel and obtained an acquisition price coefficient.
However, Sinopec’s acquisition price coefficient is clearly difficult for CNOOC and other biodiesel producers to accept.
A representative of a biodiesel producer said: "If Sinopec and PetroChina are all purchased at this price across the country, it is difficult to avoid a loss situation."
It is reported that at this stage, Sinopec and other channels will not sell biodiesel at the expense of losses. CNOOC and other producers will not lose money in order to promote biodiesel. It is obviously not enough to rely solely on the promotion of local governments and enterprises. Only when the country introduces corresponding fiscal and taxation support policies can we solve the dilemma of the biodiesel pricing game and guide the entire biodiesel industry to develop in a better direction.
Biodiesel tap
Although there is no national fiscal and taxation policy support, in order to smoothly carry out the Hainan pilot, CNOOC still accepts the purchase price proposed by Sinopec.
The climatic conditions in Hainan are quite beneficial for the cultivation of raw woody plants. At the same time, Hainan Dongfang City, where the project is located, is a certain base for CNOOC's industrial base in Hainan.
In addition, the strong support of local governments has also given CNOOC more confidence.
As early as last April, the General Office of the People’s Government of Hainan Province issued the Notice on the Work Plan for the Promotion and Use of Biodiesel in Hainan Province (hereinafter referred to as the “Noticeâ€). The overall goal of the promotion of biodiesel in Hainan proposed by the Notice is that from January 1, 2010, the province will be closed for operation, and all retail outlets in the province will promote the use of diesel fuel containing 5% biodiesel to blend fuel.
This is six months earlier than the actual start of the pilot project. The relevant leaders of Hainan Province served as the leader of the “Hainan Biodiesel Market Promotion and Use Leading Groupâ€, focusing on this work.
On the other hand, outside the Hainan market, CNOOC has also begun to prepare for the future national market.
According to reports, in July 2008, CNOOC acquired 26% equity and 48% of the capital of the original investment party Bilu Bioenergy Production and Trading Co., Ltd. of Nantong Bilu Bioenergy Protein Feed Co., Ltd., and changed the company name to Haiyoubi. Lu Bioenergy Protein Feed Co., Ltd., actually holding 74%.
"According to our understanding, at the end of March this year, the 270,000 tons/year biodiesel project of Haiyou Bilu has been formally commissioned for commissioning." Gao Ye said, "From the perspective of total capacity, CNOOC is already the largest biodiesel producer in China. ."
Sinopec's abacus
Sinopec is also preparing for the biodiesel business, but its strategy is different from CNOOC.
At present, Sinopec has completed sufficient technical reserves. While playing a game with CNOOC on the biodiesel pricing mechanism, Sinopec has maintained close cooperation with it on another level.
It is understood that CNOOC Hainan's 60,000 tons/year biodiesel project is based on Sinopec's process package. The fourth construction company of Sinopec also officially undertook the construction contract for the construction of CNOOC New Energy Company.
According to Sinopec, “This marks a gratifying step for Sinopec and CNOOC in the cooperation in the production and construction of biomass resources. It will build a new and technologically innovative development for the two sides to enter the renewable energy and alternative energy industries. platform."
At the end of 2007, Sinopec had reached an agreement with Guizhou Province to build a 50,000-ton/year biodiesel project in Guizhou. However, after the project was officially approved in 2008, it has not yet been put into production.
“Because the current profit prospects are still unclear, biodiesel is difficult to become the current development focus of Sinopec.†The above-mentioned insiders pointed out that “as a relatively small company among the three major oil companies, CNOOC develops new businesses and fosters new profit growth. The strength of the point is obviously more."
With the nation's first refined oil sales network, even if the development of biodiesel enters the fast lane, Sinopec does not have to worry about being left behind by competitors. With the implementation of the Hainan pilot, Sinopec, which is closely cooperating with CNOOC, can choose the right timing based on the next development of the biodiesel industry.