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China's oil product exports set to break all records

Staff Writer |
China's oil product exports are likely to stay strong in the second half of 2016 after rising to close to record highs in June.

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New independent refiners prepare to join the bandwagon and state-owned oil giants sit on large volumes of unused export quotas.

Several independent refiners including Chambroad Petrochemicals, Luqing Petrochemical, Wonfull Petrochemical and Lihuayi Group plan to start oil product exports in the second half of the year, Platts reports.

Chambroad, Luqing, Wonfull and Lihuayi have a combined 255,000 mt of export quotas.

In addition, Sinochem Quanzhou won an oil product export quota of 2.55 million mt in the government's third round of quota allotment -- more than the 2 million-mt quota it received in the first two rounds, indicating its ambitious export plan.

At the same time, the state oil giants Sinopec and CNPC hold sufficient quotas to raise their exports going forward.

Including quotas awarded in the third round, Sinopec now has a total export quota of 21.2 million mt - more than double the 10.3 million mt quotas it won over the first three rounds in 2015.

CNPC has 13 million mt awarded in the first three rounds, up 68% from the 7.75 million mt in last year.

Over January to May, China exported 3.35 million mt of gasoline, 5.49 million mt of gasoil and 4.78 million mt of jet fuel.

This represents only 31%, 35% and 32% of the respective quotas for the products granted so far this year.

According to preliminary trade data released last week by China's General Administration of customs, China exported 4.22 million mt of refined products in June, close to the record high of 4.32 million mt achieved in December last year.

The June export volume was up 38% year on year and up 10.5% from May.

Oil product exports in the first half of the year has risen 45.3% year on year to 21.5 million mt.

The big jump in exports was attributed to the historical high refinery throughput of 11.01 million b/d in June.

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