China’s CNOOC begins exports of gasoline, diesel

China National Offshore Oil Corp (CNOOC) has received government approval to begin international exports of diesel and gasoline cargoes in early May. 

New capacity additions and refinery upgrades have expanded China’s refined products supplies, thus placing more pressure on domestic margins. The ability to export surplus refined transportation fuels is hoped to relieve stress in the Asian gasoline markets.

CNOOC operates one wholly-owned refinery. However, with JVs, CNOOC has 800 Mbpd of throughput capacity or 5.7% of the nation’s refining capacity. CNOOC expanded its Huizhou refining complex, near Hong Kong.

The May export products include 30,000 tons of 50-ppm S diesel and 15,000 tons of 92 octane, 10-ppm-S gasoline and were loaded in April with unloading in May.

CNOOC exported its first jet fuel cargo in September 2014 after receiving government approval for overseas sales. The cargoes were mainly shipped to Hong Kong.

China controls oil product exports through quotas to a few state-run refiners, mainly Sinopec Corp, PetroChina and WEPEC refinery, after assessing domestic needs.

CNOOC is spending $8 B to expand its Huizhou refining and petrochemical complex and is adding a 200 Mbpd of capacity to the existing 240 Mbpd facility, according to industry sources. The new refining capacity is forecast to be online by 2018.