Sinochem Energy Co.,Ltd. produce and sell refined petroleum products and petrochemical products, and provide processing service for customers with the raw materials supplied by them. As of March 31, 2018, we mainly produced gasoline, diesel, kerosene and petrochemical products such as naphtha, LPG, mixed C4s, toluene, xylene, trimethylbenzene and polypropylene.
We own and operate Quanzhou Refinery in Fujian province, which is one of the most modern and sophisticated refineries in Asia, and is where we produce all our refined petroleum and petrochemical products. Quanzhou Refinery has a designed annual processing capacity of 12.0 million tonnes of crude oil, assuming uninterrupted production and 8,400 operating hours per annum. For the years ended December 31, 2016 and 2017 and the three months ended March 31, 2018, our crude oil processing rate, which reflects the amount of crude oil processed relative to the designed annual processing capacity, taking into accounts the maintenance and repair sessions and the overhaul sessions at the facility, was 92.4%, 101.7% and 101.5%, respectively, higher than the average crude oil processing rate of slightly above 80% in the PRC, according to the Nexant Report. In light of the growing demand for refined petroleum products and petrochemical products, we are expanding the existing facilities in Quanzhou Refinery to increase our annual refining capacity of crude oil to 15.0 million tonnes. Furthermore, we are constructing new production facilities for principally ethylene and derivatives, and aromatic products including paraxylene.
Our refining and petrochemicals segment procures all crude oil supply for Quanzhou Refinery from international oil companies, national oil companies and international trading companies through our oil and petroleum products trading segment. Under the relevant agreements, pricing is based on the benchmark prices of various types of products plus freight costs and other incidental expenses from international oil companies, national oil companies and trading companies. We sell our refined petroleum and petrochemical products to domestic and overseas customers. Under the relevant agreements, pricing is based on various benchmark prices pursuant to certain pricing formulas.