China’s state-controlled PetroChina has exported gasoline to the seaborne market from its inland refineries as supplies in northeast China markets build up, its parent firm CNPC said.
The company’s 110,000 b/d Daqing Refining and Chemical refinery shipped gasoline from the Dalian Xingang terminal to Singapore this month, in a 300,000 bl shipment that may have combined with gasoline produced from its 190,000 b/d Daqing Petrochemical refinery as well. PetroChina’s Daqing plants need to move fuel by rail first to coastal Dalian before exporting it by sea.
This marks the first time PetroChina has shipped fuel from its northeast China inland refineries by sea, although Chinese state-controlled firms have started shipping transport fuels in larger vessels or bigger cargo sizes in the past few years as they sought to improve economies of scale and lower costs.
Rising domestic supplies has seen a steep increase in Chinese oil product exports in recent years, CNPC said.
China’s inland refineries have to rely on trucks and highways to transport products so export volumes are limited. PetroChina uses trucks to export products from its landlocked Anning refinery in southwest China’s Yunnan province to neighbouring Burma (Myanmar).
Chinese gasoline exports have risen by 50,000 b/d to an average 370,000 b/d in the first half of this year from a year earlier. But fuel exports remained low in June on weaker demand from overseas and negative export margins. Gasoline exports in June fell by 70,000 b/d from a year earlier to 210,000 b/d, according to Chinese customs data.
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