China’s Hengli exports first jet fuel cargo

Market: Oil products
28/08/19

China's private-sector Hengli Petrochemical has exported the first jet fuel cargo from its new 400,000 b/d Dalian Changxing refinery, market participants said.

The company sold a 300,000 bl cargo loading from Dalian last week at a discount of $0.50-1/bl to Singapore spot assessments to an unknown buyer.

The Chang Hang Xian Feng left the Hengli Petrochemical terminal in Dalian on 26 August and is due to reach Yosu in South Korea today, data from oil analytics firm Vortexa show. Market participants said the vessel is carrying jet fuel. The sale has not been confirmed by Hengli.

Hengli, like other private-sector Chinese refiners, does not have an export licence that would enable it to sell directly to the overseas market. The company likely exported the cargo through one of China's state-controlled refiners, market participants said.

China's commerce ministry released its third batch of export quotas earlier this month, including 1.545mn t (12.17mn bl) of jet fuel — 900,000t awarded to Sinopec, 350,000t to Sinochem, 200,000t to CNPC, 85,000t to CNOOC and 10,000t to aviation fuel distributor CNAF.

China has now awarded 418,000 b/d of jet fuel quotas in 2019, up by 22pc from full-year 2018. The jet fuel quotas have increased by more than any other product, amid rising domestic supplies.

Hengli opened its Changxing refinery in mid-May and ran it at close to capacity last month. The refinery is designed to produce up to 80,000 b/d of jet fuel.

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China’s Hengli exports first jet fuel cargo

Related news posts

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