SINGAPORE, Sept 25 (Reuters) - China's latest greenfield

refinery, Shandong Yulong Petrochemical, is running one of its

two crude units at 60-70%, two sources familiar with the matter

said, as local government announced its official start-up on

Wednesday.

The refinery was in the process of bringing online its

200,000-barrel per day (bpd) unit last Friday, Reuters had

earlier reported.

Meanwhile, Yulong has offered 10ppm sulpur diesel and some

higher sulphur content diesel in the local domestic market for

sale as of this afternoon, given that its hydrotreating unit is

also in operation, two separate China-based trade sources said.

The refiner is planning to start up one of its reforming

units in the next two days, an additional two China-based market

sources said, adding that there are plans for the sale of some

petrochemical products starting October.

So far for October shipment on the feedstock front, Yulong

has bought several ESPO blend, Upper Zakum and Oman crude

cargoes.

This refinery project is 51% owned by private aluminium

smelter Nanshan Group, 46.1% by provincial government-backed

Shandong Energy Group and the remainder by two local firms.