China had released 3 million tonnes of low sulfur fuel oil (LSFO) export quotas in the second batch for 2023, down from 8 million tonnes in the first batch for this year, according to OilChem. The export volume was primarily allotted to state-owned refiners.
The new allocation lifted the total quota volume to 11 million tonnes year to date for 2023, 12.82% higher than the 9.75 million tonnes awarded in the first two batches of 2022, data from OilChem showed.
However, the first batch of LSFO export quotas had not been used up yet, due to weak bonded bunker fuel demand and poor production profit in the first four month of this year.
Based on current production situation of enterprises, OilChem expected that the third batch export quotas might be released during July-August, when some enterprises may still have the demand to apply for it.
China's 2nd batch of LSFO export quota for 2022 and 2023 (Unit: '000 tonnes)
Enterprise |
2023 |
2022 |
|||||||
1st-batch |
2nd-batch |
Total |
Proportion |
YoY Chg |
1st-batch |
2nd-batch |
Total |
Proportion |
|
Sinopec |
4,290 |
1,440 |
5,730 |
52.09% |
1.42% |
3,840 |
1,810 |
5,650 |
57.95% |
PetroChina |
3,020 |
1,270 |
4,290 |
39.00% |
4.48% |
2,030 |
1,160 |
3,190 |
32.72% |
CNOOC |
620 |
250 |
870 |
7.91% |
16.00% |
500 |
250 |
750 |
7.69% |
Sinochem |
30 |
10 |
40 |
0.36% |
0.00% |
30 |
10 |
40 |
0.41% |
ZPC |
40 |
30 |
70 |
0.64% |
-41.67% |
100 |
20 |
120 |
1.23% |
Total |
8,000 |
3,000 |
11,000 |
100.00% |
12.82% |
6,500 |
3,250 |
9,750 |
100.00% |
Source: OilChem
Written by Sunny Fang, fss@oilchem.net
Edited by Navy Liu, navy@oilchem.net