The massive flooding in China, that is reported to be the country’s worst since 1998, has forced the largest oil company in Asia, Sinopec, to close 500 gas stations and shut down some refinery facilities in the southern and central regions of China, according to Oil Price.
The China Petroleum and Petrochemical Corporation (CPPC), the parent company of Sinopec, reported that 300 gas stations were closed in mid-June 2016 and another 250 were not safe to operate. Sinopec closed some hydrogenation equipment and a part of a refining unit at a facility in Wuhan in early July when some pipelines were engulfed by the water.
The heavy rains and flooding damaged natural gas and oil pipelines along with some port facilities, 173 people have died, 31m citizens in 12 provinces have been affected.
As a result, the company announced that it expects its crude output to decrease in 2016 and it will have difficulty to attain its profit margin for the third quarter, reported Yahoo Finance.
The China Petroleum and Chemical Corporation has faced a similar case in 2010 when it was also forced to close around 100 wells in China’s southern parts due to severe flooding.