China has announced the fourth batch of product oil exports quota for 2015 at 9.9 million tonnes, including 46 percent for kerosene and 34 percent for diesel, said ICIS on Monday. Sinopec and CNPC obtained 6 million tonnes and 3.25 million tonnes of the fourth batch of product oil export quota respectively, said ICIS. The fourth batch of product oil export quota was announced only two months after the release of the third batch, which was mainly because the quantity of the third batch was relatively small and some major refineries in China has used up their quota, said Lin Jiaxin, an analyst with ICIS. Confined to the limited export quota, Sinopec Hainan Refinery's gasoline exports declined to 20,000 tonnes in July, and suspended gasoline exports in August, and it has used more than 90 percent of its export quota for kerosene and diesel.
CNPC Guangxi Qinzhou Refinery and West Pacific Petrochemical (WEPEC) are also facing depleting quota for some products. Among the fourth batch of product oil export quota, kerosene export quota reached 4.55 million tonnes, 78 percent of which have been obtained by Sinopec's refineries. Maoming Refinery obtained 570,000 tonnes, and Hainan refinery and Yangtze refinery both obtained 400,000 tonnes. The fourth export quota for diesel increased to 3.35 million tonnes, hiking 17.1 percent from the third batch. Though domestic refineries have cut diesel processing to cope with gloomy domestic demand, diesel supply in China remains excessive, which has to be balanced through exports, said Lin Jiaxin.
ICIS forecast that China's monthly diesel exports would continue increasing, which may top 1 million tonnes. Specifically, CNOOC's Huizhou refinery obtained 350,000 tonnes diesel export quota for the fourth batch, 16.7 percent higher than the total of the first three batches. Jinling refinery obtained 360,000 tonnes, 2.4 folds of the three batches total. Shanghai refinery obtained 300,000 tonnes, staying even with the three batches total. Yangtze refinery obtained 30,000 tonnes. Guangxi refinery, WEPEC and Dalian refinery obtained 500,000 tonnes, 270,000 tonnes, and 180,000 tonnes, respectively. The fourth batch of product oil export quota includes 2 million tonnes of gasoline, 60 percent of which were obtained by CNPC's refineries. ICIS forecast China's monthly gasoline exports would maintain at 500,000-550,000 tonnes. Statistics from the General Administration of Customs showed that China's exported 2.52 million tonnes of diesel, 6.29 million tonnes of kerosene, and 2.94 million tonnes of gasoline in January-July of 2015.
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