Oil pipeline explosion in Qingdao city update

Oil pipeline explosion in Qingdao city update

The deaths in an oil pipeline explosion in Qingdao city in China’s Shandong province have climbed to 52, rescuers said Sunday. According to the rescue agency, four more bodies were found at the blasts site, and reports and investigations showed 11 others were missing in the accident, reports Xinhua. Rescue efforts continued Sunday despite bad weather, the agency headquarters said.

The blast occurred Friday at the crossing between Haihe and Zhaitangdao road in Huangdao district after oil leaked from a Sinopec pipeline into the municipal pipe network. The 176-km pipeline, which links oil depots in Huangdao to Weifang city, home to a few petrochemical plants, is owned by Sinopec, China’s largest oil refiner. The pipeline, with a total investment of 1.3 billion yuan ($211.8 million), became operational this August. It has an annual capacity of 15 million tonnes.

Shares of Sinopec, China’s top refiner listed in both Shanghai and Hong Kong, opened to tumble on Monday following Friday’s deadly oil pipeline blasts in east China’s Shandong Province.

A-share of Sinopec in Shanghai opened at 4.85 yuan (79 U.S. cents) per share, down 3.96 percent from Friday’s closing price.

H-share of Sinopec opened at 6.8 HK dollars (87 U.S. cents), down nearly 3 percent from Friday’s closing.

In a filing on Sunday to both the Shanghai and Hong Kong stock exchanges, Sinopec said its crude oil pipeline in the Qingdao Economic and Technological Development Zone in Shandong ruptured on Friday morning, resulting in oil leakage and some crude oil entered into the covered municipal drainage trench and flowed into the frith of the bay area.

The refiner “expressed its sincere condolences to the victims and extended its deepest sympathy to the injured persons and their families of this major casualty accident,” said the statement.

The pipeline that occurred oil leakage was the Donghuang II Pipeline. The pipeline was completed in construction and put into operation in July of 1986. It was 248.52 km long with a capacity of 10 million tonnes per annum.

Oil and Gas Press