China issued its first batch of crude import quotas for 2022 with 11% lower volume to the first allocation of 2021, according to industry sources and a document reviewed by Reuters, giving more capacity to large private companies over smaller processors.
World oil prices trimmed their gains after falling import quotas for the world’s leading oil importer, which set its first round at 109.03 million tons.
Among the 42 companies awarded quotas, the country’s top three private refineries – Zhejiang Petrochemical Corp (ZPC), Hengli Petrochemical and Shenghong Petrochemical – collected 41.95 million tonnes together. This figure represents 38% of the total and almost 50% more than the previous year.
ZPC, the largest refinery in China, with a total crude processing capacity of 800,000 barrels per day, was awarded 20 million tons, followed by Hengli, with 14 million, and Shenghong, with 7.95 million, according to the Ministry of Commerce document. .
The smaller plants, most of which are based in the refining center of eastern Shandong province, received quotas totaling 51.4 million tonnes, about 26% less than a year ago, according to the documents.
Analysts said the trend is in line with Beijing’s policy of consolidating its refining sector, eliminating excessive and inefficient processing capacity in favor of mega-complexes with more advanced technology.
“In general, the latest installment of quotas is within market expectations, which is that integrated mega-companies are gaining favor at the expense of traditional (smaller) plants,” said Chinese consultancy Longzhong.
The Commerce Ministry did not immediately comment.
China set the total crude import quotas for non-state companies in 2022 at 243 million tonnes, the same level that it had initially forecast for 2021.
Reference-www.eleconomista.com.mx