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Chapter 405: Layout of the Energy Industry
As a subsidiary of Shanshen Group that was just established last year, Yanlong Petrochemical is also one of the key projects that Mu Shanhe inspected during this trip.Considering that Xiangcheng itself has petrochemical and refining plants, he acquired several last year.

After integrating these acquired factories, they were all transferred to Yanlong Petrochemical Company.After learning about Mushanhe's capital injection and adjustments to the company and factory management, Yanlong Petrochemical is now a well-known petrochemical company in Xiangcheng.

The acquired gas supply stations and gas stations currently account for nearly [-]% of the market share in Xiangcheng.Other companies of the same type are in misery right now.The reason is simple. Yanlong Petrochemical’s gas and oil are cheaper.

Seeing the refining plant under construction, Mu Shanhe also said directly: "After the refining technology and equipment are upgraded, our refining production capacity must also keep up. We must continue to improve the current market share."

"Chairman, please rest assured that the current daily processing output of our refinery has more than doubled than before. When workers become familiar with the new equipment, I believe the production capacity will be further improved."

"How is the current construction of the oil storage area?"

"According to the group's earlier plan, we purchased several pieces of commercial land in Xiangcheng, and the current amount of oil and gas storage has more than tripled. In terms of production capacity and stored oil, we are the well-deserved number one in Xiangcheng."

Seeing that the person in charge seemed to be very satisfied with this result, Mu Shanhe said directly: "It's just a city that ranks first. What's there to be happy about? In my opinion, we have to surpass other regions.

Regardless of the Lion City or the Treasure City, their reserves and processing capabilities in this area must be much better than ours.At present, we only have a refinery here, but this year the domestic refinery will also be officially put into production and operation.

As a result, our daily oil processing capacity will definitely be further improved.Only by relying on various factors such as production capacity, quality and price can we truly build the reputation of Yanlong Petrochemical, do you understand? "

"Okay, Chairman, we will definitely take this as our goal and continue to improve our production capacity and storage capacity."

"In the short term, I will not extract profits from petrochemical companies, so you boldly buy land to build storage bases. As the Asian economy enters the fast lane, the ability to absorb demand for petrochemical products will continue to increase.

I hope your management can understand that the market our company faces will never be limited to Hong Kong, but to more places.If the group has the opportunity in the future, it hopes to purchase oil fields overseas for development.

If our production capacity and storage capacity cannot be improved, you should know how troublesome it will be.The importance of energy to the economy, I believe, will become more and more important in the future, so you must keep your spirits up. "

Although currently Yanlong Petrochemical has not yet obtained the qualifications to build gas stations and gas stations in the mainland.But in Mu Shanhe’s view, as the domestic demand for oil and gas continues to increase, it is only a matter of time before Yanlong Petrochemical obtains the qualification to build a station.

If the domestic market can be opened up, the two refining and chemical plants in Xiangcheng and Mainland China may not be able to meet the increasing consumption.As for where the crude oil comes from, Mu Shanhe doesn't think there's anything to worry about for the time being.

At present, the oil transported from Polar Bear alone is enough to make Yanlong Petrochemical consume a little hard.Fortunately, with the relationship between the Su family and the Hong family, there is no need to worry about not being able to sell the excess crude oil or refined oil shipped out.

It’s just that Mushanhe is more willing to sell refined oil than to sell crude oil.Although crude oil needs to go through the refining process, the chemical supplies extracted during the refining process are still in short supply today.

Although Yanlong Petrochemical has shares in the Su family and the Hong family, they do not hold many shares in this company.Anyone who understands Mu Shanhe's nature knows that he can share profits with others, but the absolute controlling rights must be in his own hands.It can be said that precisely because Mu Shanhe established Yanlong Petroleum, Xiangcheng HNA Transportation, which was originally on the decline, has reaped many benefits.Oil tankers sail on the sea every day, transporting exchanged crude oil and refined oil products.

As for polar bears, although they know that someone is secretly dumping crude oil at low prices, they can't stop it at all.Because other countries that need crude oil import it from other oil-producing countries, and the price is cheaper than theirs.

The extraction of oil wells or oil fields cannot be stopped, and the extracted crude oil cannot be sold. If it is stored, the cost will be higher than if it is sold.In desperation, the polar bear could only turn a blind eye.

In any case, oil fields dumping oil at low prices can not only exchange for a large amount of daily necessities, but also exchange for much-needed foreign exchange.It's just that the oil fields will only hand over a small part of these foreign exchanges, and the rest will naturally be divided up.

As for the daily necessities exchanged, they are directly digested internally.Compromising public health and enriching one's private life is nothing new for today's polar bears.With this rare opportunity, Mushanhe naturally has to transport more cheap crude oil.

If it cannot be refined for the time being, store it.Anyway, refineries need supporting storage bases.In addition to the establishment in Xiangcheng, the storage base built in China has a larger storage capacity than Xiangcheng.

And the country in China is naturally happy to see the results of this kind of investment!

Although the country has certain reserves of oil resources, many people know that this is a non-renewable resource. The more it is exploited now, the less it can be exploited by future generations. In the early years, China was an oil exporter.

But now the country has changed from an oil exporting country to an oil importing country, and even the amount of crude oil purchased from overseas is increasing every year.The reason for increasing the purchase quantity is naturally to meet domestic oil demand.

Now that Shanshen Group is willing to build a modern and high-standard petroleum refinery in China, and also build a large-scale storage base, how can the country refuse such investment?

The sale permission has not yet been obtained because the refinery has not yet been put into production and operation.When the refinery starts mass-producing refined oil, Mu Shanhe believes that applying for a sales license will not be difficult.

Because of this, domestic demand for oil will be alleviated to some extent.As long as it obtains the marketing license, Yanlong Petrochemical will have the opportunity to become a truly giant energy company in China in the future.

It is precisely because of this clear understanding that Mu Shanhe is willing to invest heavily in this industry.As the country sees a steady stream of crude oil arriving at ports, it is natural to hope that refineries can start production and operations as soon as possible.

If it gets the marketing permission, Mushanhe even plans to build a petrochemical base in the north.As for where the crude oil will be obtained, when Michal and others gain a foothold in the Middle East, are they still afraid that they won't be able to grab a few oil fields?
Rely on mercenary groups to control the oil fields, and then use the extracted oil to support these relatively expensive mercenaries.With mutual help, Mu Shanhe believes that this business will definitely be very profitable in the end.

After all, compared with the cost of raising a mercenary group, the income from the oil field output in the future will undoubtedly be higher!

(End of this chapter)