• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 28 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 5 hours China's Blueprint For Global Power
  • 16 mins IMO 2020:
  • 11 hours World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 1 hour Brexit agreement
  • 16 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 3 hours The Ultimate Heresy: Technology Can't Fix What's Broken
  • 19 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 19 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 19 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 12 hours Deepwater GOM Project Claims Industry First
  • 14 mins Idiotic Environmental Predictions
Trump’s Impossible Biofuel Dilemma

Trump’s Impossible Biofuel Dilemma

The Trump administration has been…

JLC

JLC

JLC with headquarters located in Beijing, and branch offices in Shanghai, Shandong, Guangzhou and Singapore, is a leading provider of market intelligence and pricing solutions…

More Info

China Raises Crude Import Quotas Amid Falling Refining Margins

China refinery

China’s Ministry of Commerce (MOFCOM) has issued this year’s second-batch quotas for non-state crude imports, permitting 56.85 million mt of import, according to a notice from the MOFCOM.

The quotas surged 377% from 11.91 million mt for the same batch in 2018.

The MOFCOM has thus released permits for a total of 153.10 million mt of non-state crude import so far this year, including the supplementary quotas for 4.31 million mt of import for the first batch, a modest increase of 1.21% from the total quotas for 2018.

Hengli Petrochemical obtained permits for 12.80 million mt of crude import under the second-batch quotas, while Zhejiang Petrochemical was not listed. Hengli is raising its refinery operating rate and its monthly crude import has exceeded one million mt, industry sources said. Zhejiang Petrochemical has started up only one 200,000 bbl/day crude distillation unit and has not achieved a full production line yet, but it is still possible for the MOFCOM to grant permits to Zhejiang Petrochemical later this year.

Conventional independent refiners (excluding ChemChina’s subsidiaries, Fuhaichuang Petrochemical/Dragon Aromatics (Zhangzhou) and new refining-chemical complexes) have got quotas for 100.31 million mt of non-state crude import under the two batches of quotas for 2019, a drop of 3.18 million mt or 3.07% year on year, JLC data shows. Meanwhile, the quotas for ChemChina shrank by nearly 20% to 14.82 million mt. All this indicates increasing negative impacts on conventional private refiners as new refining-chemical projects come on stream, and the government’s policy preference for traditional refiners has come to an end.

Traditional independent refiners have recorded low operating rates and shrinking refining margins year-to-date, and new refiners such as Hengli and Zhejiang Petrochemical will make major inroads into these traditional refiners’ markets. As the market becomes increasingly oversupplied, traditional refiners are in great need of upgrades, and only some of them will survive in the future.

As more refiners eye a larger role in the petrochemical sector and more related government policies come out, the country will see increasing integration of independent refiners, more relocation to industrial parks, more extensions to the chemical sector and increasing refining capacity for a single refinery.

By JLC International

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play