China issues 2025 crude quota to Sinochem for eastern China refineries
State-run Sinochem Group has received a crude oil import quota of 17.12 MM tonnes (t) for 2025, which will be for the group's eastern China refineries, trade sources said on Tuesday.
The issue, which equates to 342,400 bpd, is part of the broad 2025 quotas allotted to the country's independent refiners. Traders said the quota indicates Sinochem's three Shandong province refineries, declared bankrupt and with operations shut in, could resume operations.
Weaker fuel demand has eroded margins for refiners who are processing less crude than the year before.
Sinochem may keep the refineries after an auction to sell the assets drew little interest.
Separately, state-run CNOOC also received 3 MMt of crude import quota for its majority controlled subsidiary refinery in east China's Ningbo, according to several traders and consultancy China Sublime Information.
The allocated amounts to Sinochem and CNOOC bring the total 2025 crude oil quotas so far to 178.45 MMt, or about 3.57 MMbpd.
China is the world's biggest oil importer and second-largest consumer. Last year's total crude import quota was 182.69 MMt, or 3.65 MMbpd.
(1 tonnes = 7.3 bbl)
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