China’s state planner on Friday granted another independent refiner, Jiangsu Xinhai Petrochemical Company, a preliminary crude import quota of 2.3 million tonnes for 2018, indicating it could continue to allow more companies to import crude. Beijing could also allocate more quotas to two new refineries built by Dalian Hengli Petrochemical and Zhejiang Rongsheng when they come on line next year, Chinese trade sources said.
Among independent refiners, Haiyou Chemical’s allocation for 2018 tripled from this year, while Shandong Wonfull Petrochemical’s quota nearly doubled, according to Reuters data. Chambroad Petrochemical, Baota Petrochemical and Sinochem Hongrun can also import more crude next year.
Beijing issued quotas to independent refiners for 2017 totalling 93.2 million tonnes, about 22 per cent of China’s imports for the year at 421.5 million tonnes, according to Reuters data and estimates by Thomson Reuters Supply Chain and Commodities Research. Independent refiners imported about 64 million tonnes of crude in the first 11 months this year, estimates by the research team showed. State oil companies and their refining and trading subsidiaries will have a quarter of the crude import quotas for 2018, the documents showed. The quotas do not apply to China’s five state-owned major oil companies such as PetroChina and Sinopec, which are allowed to import crude freely.