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China Petroleum

M O N T H LY NEWS AND ANALYSIS ON OIL MARKETS, POLICY AND INFRASTRUCTURE VOLUME VIII, ISSUE 7, JULY 2014

Stocking filler Chinese net


Chinese netoil imports
imports mnb/db/d
mn

Stockpiling will underpin growth in Chinas third-quarter 8


Crude Products
7
crude imports. Refinery run rate increases will be modest 6
5
Chinese crude imports could rise in northeastern Liaoning province at the 4

steeply from year-earlier levels in July- end of July, after it was taken off line for 3
2
September, as oil firms pump crude into maintenance in April. But the 130,000 b/d 1
new storage tanks and refineries. Argus crude pipeline connecting Xingang port 0
Jan 13 Jul Jan 14
expects Chinese crude imports in the and the plant was shut after a 30 June fire.
third quarter to be 6.62mn b/d 1.28mn The line has reopened but throughputs
Chinese refinery
Refinery runs runs mnmn
b/d b/d
b/d or 24pc higher than year-earlier lev- will be negligible until early September
11
els. Imports have risen steeply since last while safety checks are carried out.
year, mainly to fill new storage tanks. Top economic planning body the 2011 2012
10 2013 2014
Sinopec will account for most of the NDRC was expected to approve by July
growth in third-quarter imports. The firm new quotas allowing teakettle refinery
9
will use almost 45pc of its anticipated operators to use imported crude
additional crude imports to help fill the a move that would boost their crude
8
new strategic petroleum reserve (SPR) use at the expense of fuel oil demand Jan Apr Jul Oct

tanks at Tianjin. It pumped 60,000 b/d of (ACP, May, p8). But Beijing has delayed
crude into the Tianjin SPR in March-May issuing new quotas because it is con- Chinese
Chinesecrude production
crude production mnb/db/d
mn

and plans to lift this to 65,000 b/d in July- cerned about excessive domestic refin- 4.3

September, after a hiatus in June. This ing capacity. State-owned Sinochems 4.2
suggests that the 20mn bl SPR will con- 120,000 b/d Hongrun refinery and the 4.1
tain 11.5mn bl of crude by 30 September. 230,000 b/d Heze Dongming refinery, in
4.0
But Sinopec is likely to delay phase which PetroChina has a stake, hoped to 2011 2012
3.9
2 plans of its Huangdao SPR project in receive 100,000 b/d quotas. They remain 2013 2014

eastern Shandong province, after a fire confident of receiving the quotas, but are 3.8
Jan Apr Jul Oct
at the port last year (ACP, December, p5). no longer sure of when (ACP, June, p5).
The 19mn bl Huangdao phase 2 tanks
Chinese apparent demand 000 b/d
were due to open this year, but this is no Low-key debut % /
May Apr YTD
Sinochem looks likely to drop plans to YTD 13
longer certain, a company official says.
Net imports 6,254 7,052 6,474 8.0
Sinopec plans to raise its third-quar- raise crude runs at its debut greenfield
of which:
ter crude throughputs by about 80,000 refinery, the 240,000 b/d Quanzhou plant
Crude 6,094 6,802 6,217 11.3
b/d from the second quarter to 4.76mn in southern Fujian province. The refinery Products 160 250 258 -36.7
b/d. Imports will supply all the addi- operated at about 27pc of capacity in Production 4,124 4,075 4,104 0.2
tional crude. Upgrades to its 100,000 b/d January-April using imports and began Appt. demand 11,378 11,127 10,578 4.9

Shijiazhuang refinery in northern Hebei product sales in April mainly to prov- Refinery runs 9,500 9,598 9,674 1.0

province and 160,000 b/d Yangzi refinery inces other than Fujian, which is already
in eastern Jiangsu province will increase well-supplied by Sinopec. Argus earlier Crude, 9 Jul $/bl Products, 9 Jul
Dubai (Sep) 105.95 China $/t
distillation capacity by 60,000 b/d and forecast that Sinochems plans to lift
Dubai (Oct) 105.50 HSFO S China 608.65
90,000 b/d in August and September, runs at Quanzhou would boost the firms
Oman (Sep) 105.99 M-100 E China* +109.50
respectively. Sinopec will allocate about third-quarter imports by 225,000 b/d. But Minas 109.18 Singapore $/bl
60,000 b/d for these new facilities. the refinery is not likely to raise through- Tapis 110.40 Gasoil 0.5pc 117.80
PetroChina does not expect to lift puts until the commerce ministry grants Bonny Light 108.00 Gasoline 92 Ron 121.35

refinery runs in the third quarter. It aimed Sinochem quotas and licences that will Girassol 106.05 HSFO 180 $/t 597.75
North Sea Dated 106.90 *premium to Mops
to restart its 410,000 b/d Dalian refinery allow it to export surplus fuels.

Argus Media Ltd www.argusmedia.com


Argus China Petroleum July 2014

Contents
Comment In brief
Swallows and amortisations 3 Sinopec eyes new products markets 12
ConocoPhillips cedes Penglai control 12 Key China highlights
Downstream
Total exit casts pall over refining sector 4 Markets Sinopec aims high
Sinopec reveals sale target 4 June imports fall before peak maintenance 13 Sinopec has unveiled plans to
Sinopec completes Hebei upgrade 5 Exports boost fuel prices 13 raise more than $16bn through the
Sinopec goes slow on new plants 6 Independent refining sector 15
Teakettles eye next hurdle as debt grows 8 privatisation of parts of its retail and
Crude markets 17
Qinzhou to muscle in on diesel exports 10 marketing business later this year
Fuel upgrades to squeeze demand 11 (see p4)
Urals discounts boosts Sinopec buying 11 Market prices
Chinese oil product prices 14 Quotas remain elusive
Midstream International products 16 Hopes that Beijing would open
Oil firms improve distribution 5 International crude 17
up the pool of refiners allowed
Crude official selling prices 17
Regulation Crude formula prices 17
to import crude are fading fast,
Post-Liu era promises tougher regime 6 Freight rates (dirty) 17 suggesting that China will import
Audit may draw line under CNPCs woes 10 less crude and more fuel oil this
year (see p7)
Imports China data
Hopes fade for market opening 7 Fuel oil fixtures 16
Crude imports fall in June
Iraqi supply to remain below target 7 Crude production 18
Chinese crude imports last month
Crude imports/exports 19-22
Shale Refinery throughputs 23-24 fell sharply from May levels, but
Fuling debate revives shale worries 9 Refinery output 25-27 there appears to have been little
Fuel oil imports/exports 28-29 change in refinery runs (see p13)
Petrochemicals Products imports/exports 30-31
China looks to US for gasoline blendstocks 9 Crude, products apparent demand 32

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Argus China Petroleum July 2014

Swallows and amortisations


One swallow does not a summer make for Chinas oil sector. too, continues to plough money into its lossmaking refineries
Diesel prices have risen this month. Some economic data also (see p8). Having dragged their feet over costly upgrades to
point to a tentative recovery. But even if a rebound is under meet changing fuel qualities during the boom years, Chinas oil
way, Chinese oil companies may be on the wrong side of it. companies are now paying the cost in the lean years.
The US imported gasoline and exported diesel to Europe, until Chinese refineries are designed to refine medium and
its shale oil production took off. China faces a similar future heavy crude into middle distillates. Both oil giants are in the final
where it depends on imports to meet gasoline demand, and stages of an upgrade programme allowing them to produce
exports surplus diesel to Asia-Pacific, because its refining sector 50ppm sulphur diesel. They will immediately have to embark on
is geared to meet the needs of factories not drivers. a new round of investment to produce 10ppm diesel by 2017.
Bank credit is expanding rapidly in China but producer But diesels heyday may be over. Demand has risen by
prices are deflating. Diesel and gasoline spot prices fell, just 0.3pc/yr since 2012. Refiners have pared diesel yields by 3
almost consistently, against year-earlier levels in the first five percentage points in the past year alone.
months of this year (see p13). Prices for LNG, used in factories Meanwhile, falling car prices, rising wages and lengthening
and peaking power plants, are weakening too. commuting distances are boosting car use. Gasoline demand
One of Aesops fables tells of a young is rising at 10pc/yr. China is a net exporter of
man gambling away his fortune until only Editorial gasoline. But exports are equivalent to just
his cloak remains. Seeing an unseasonal 5pc of demand and will shrink as that rises. It
swallow a harbinger of summer in the northern hemisphere will only take a modest supply shock a tax on mixed aromat-
the spendthrift pawns it for one more punt on the horses. ics used in gasoline blending to wipe out exports.
In Aesops version, he loses his wager and freezes to death. Sinopec, which operates Chinas most sophisticated plants,
If the story were recast in contemporary China, Aesops young can produce more jet fuel and less diesel, but may not be
man would extend his credit and bet again on the same horse. able to boost gasoline output. It lacks naphtha, and has been
For Chinese refiners are bleeding red ink, yet plan to keep under little pressure to install costly gasoline-focused units.
spending money. They have endured losses before. But before PetroChinas less advanced refineries are, probably, just losing
the overhaul of Chinas oil product pricing mechanism in 2009, money at this point. One PetroChina official tells Argus that only
refining losses reflected Beijings repression of fuel prices to a handful of the companys plants are profitable.
support demand (ACP, September 2008, p11). Beijing has now signalled it may subsidise construction of
Now, losses reflect supply growth that has outpaced new refineries with cheap loans, going back on earlier pledges
demand. In 2008, integrated oil companies were able to recover to rein in funding to sectors facing overcapacity, such as refin-
some of their refinery gate losses through marketing profits. ing. In China, physical assets are considered better collateral
This year, PetroChina and Sinopecs marketing segments have for loans than future cash flows, so lenders pay less attention to
performed even worse than their refining businesses. Spot whether planned plants will pay for themselves.
prices have fallen further than government-set ex-refinery rates, There is a danger, now, that China is backing the wrong
in response to oversupply (ACP, April, p5). horse. The government, the banks and the oil companies are
And yet refining investment by PetroChina and Sinopec will committed to installing more diesel capacity. But the focus of oil
remain above Yn51bn ($8.2bn) this year. The teakettle sector, demand growth has switched to gasoline.

CNOOC eyes export outlet


CNOOC plans to start exports of clean accounts for 80pc of sales. CNOOC Oil giants PetroChina and Sinopec
products in August-September, after hopes that export markets will help are the only companies currently with
a delay in securing final approval for absorb the about 100,000 b/d of diesel, licences to export clean products. The
overseas sales from the countrys cus- 400,000 b/d of gasoline and 26,000 two companies often report clean prod-
toms office. b/d of jet fuel that Huizhou produces uct exports as third-party processing
The companys flagship refinery, a when running, as now, at capacity. The deals, which are excused a 17pc value-
240,000 b/d plant at Huizhou in south- refinery supplies 15,000 b/d of diesel added tax and $19-25/bl consumption
ern Guangdong province, has been and 11,000 b/d of gasoline to Shanghai, tax. Huizhou processes about 150,000
struggling to gain local market share, but only has 30 retail stations in the b/d of Chinese offshore crude, 50,000
because larger rival Sinopecs more city compared with Sinopecs 600 units b/d from west Africa and 40,000 b/d from
developed marketing and retail network (ACP, April, p11). the Middle East.

2014 Argus Media Ltd www.argusmedia.com Page 3


Argus China Petroleum Downstream July 2014

Total exit casts pall over Chinese refining sector


Total is in talks to sell its stake in the 200,000 b/d Wepec refin- Wepec has been lossmaking for a number of years, accord-
ery at Dalian in northeast Liaoning province. ing to one PetroChina official. Safety costs have risen, after a
Total declines to detail why it is selling its only stake in a spate of accidents around Dalian port. The partners face a hefty
Chinese refinery, but appears linked to a slowdown in Chinese bill to upgrade Wepec to produce fuel compatible with Chinas
oil demand growth. Wepec is nominally an export refinery but incoming 10ppm caps on sulphur in gasoline and diesel.
sells about 60pc of its output on domestic markets. Wepec Consumption tax levied at the refinery gate in China
shipped its first, 60,000 bl cargo of 50ppm sulphur diesel to already makes sales of many transport fuels unprofitable. Oil
southern Guangdong province, in May. It sold around 25,000 firms hope to recoup such losses through marketing profits.
b/d of diesel overseas last year, mainly to Singapore. Only ExxonMobil and state-owned Saudi Aramco have so far
A surge in crude imports this year has flattered Chinas secured marketing rights each has a 22.5pc in the Senmei
apparent oil demand profile crude production plus net marketing subsidiary of the 280,000 b/d Fujian refinery.
oil imports. But refinery runs, a better indicator of domestic The majors as well as state-run oil firms are losing faith in
demand for oil products, were just 1pc higher in January-May Beijings willingness to open up the refining sector. Total was
compared with a year earlier, at 9.69mn b/d. in talks with PetroChina rival Sinopec over a possible invest-
Total bought a 22.4pc stake in Wepec in the late 1990s ment in the latters proposed 300,000 b/d refinery at Zhanjiang
but has no operational control over how the plant is run. on the south coast, but appears to have shelved discussions.
This is a gripe of another of the refinerys shareholders, Shell previously hoped to invest in Zhanjiang, but now
Sinochem, which owns 33.7pc and supplies half of the plants appears to have thrown in the towel, allowing Sinopec to go
mainly Middle Easten crude feedstock (ACP, February, p7). it alone. Talks over Saudi investment in Sinopecs 200,000
PetroChina is operator with 28.4pc and the Dalian provincial b/d Qingdao refinery and PetroChinas planned 200,000 b/d
government holds 15.5pc of Wepec. Kunming refinery came to nothing. A planned 400,000 b/d refin-
It is unclear who would buy Totals stake. CNPC deputy ing joint venture at Taizhou between PetroChina, Qatari state-
general manager Wang Dongjin and Total upstream presi- owned QP and Shell is likely to be shelved following a purge of
dent Yves-Louis Darricarrere discussed an equity transfer. CNPCs upper management. Sinochem rebuffed Kuwaiti state-
But PetroChina plans to cut its refining capital expenditure by owned KPCs attempts to acquire a stake in its 240,000 b/d
5pc this year from 2013, as the firm is concerned about the Quanzhou refinery. BP hoped to invest in PetroChinas refinery
deteriorating profitability of its downstream business in China. at Qinzhou, but an agreement now appears unlikely.

Sinopec reveals sale target


Sinopec has finished valuing the retail two-thirds of its 2014 capital expendi- cost of buying fuel from Sinopec refiner-
and marketing assets that will form the ture budget. ies, which it must sell at government-set
basis of its Sinopec Sales subsidiary, Sinopec plans to sell Sinopec Sales prices. It made profits of Yn25.1bn last
which is to be sold. assets through negotiated, bilateral year on revenues of Yn1.5 trillion. This
Sinopec Sales will comprise 30,351 deals rather than the whole firm through suggests that it may take potential inves-
retail stations, 10,000km of oil prod- a stock market listing (ACP, April, p1). tors in Sinopec Sales over 13 years to
ucts pipelines and more than 94mn The company has received a number recoup their outlay.
bl of storage facilities. An audit of the of expressions of interest for the sale, Sinopec has high hopes for devel-
assets to be included has valued them mainly from domestic Chinese compa- oping the non-fuel side of its retail busi-
at Yn341.8bn ($55.2bn). The new sub- nies, it says. Sinopec management has ness, and sees this as the main driver of
sidiary includes almost all of Sinopecs not yet ruled out opening the sale to future profits under its Easy Joy brand.
retail assets but only the pipelines that foreign firms. The sale will be divided Non-fuel [grocery and car servicing]
connect refineries to storage tanks. into two phases and will include multi- business contributes half of the profit
Sinopec sold 3.5mn b/d of transport ple rounds of bidding and competitive for gas stations in mature overseas
fuel in 2013, accounting for 60pc of total negotiations, the firm says. It plans to markets and 65-70pc of retail profits,
domestic sales. finalise investor selection by September, Sinopec says. It has appointed China
Sinopec aims to raise over Yn102bn paving the way for sell-offs by the end International Capital, Deutsche Bank,
from the sale of a maximum 30pc of the of this year. Citic Securities and Bank of America
new company to strategic and financial But Sinopec Sales does not appear Merrill Lynch as financial advisers for
investors. This would be equivalent to especially profitable, because of the high the planned sales.

2014 Argus Media Ltd www.argusmedia.com Page 4


Argus China Petroleum Midstream/Downstream July 2014

Oil firms improve distribution


Sinopec and PetroChina have invested heavily in their oil $5.90/bl for shipments by rail and truck, respectively.
products pipeline network this year. The domestic oversupply Sinopec plans to extend the Hunan pipelines to cities in
of transport fuels is prompting them to place greater emphasis neighbouring Jiangxi, Guizhou, Guangdong and Hubei prov-
on lowering fuel delivery costs and increasing their flexibility in inces. This will allow it to feed products to the network from
the allocation of resources. other refineries, including its Jiujiang, Wuhan, Guangzhou and
Chinas biggest fuel supplier, Zhenhai plants. Completing the Hunan
Sinopec, opened a 110,000 b/d gasoline Yangtze river
Shandong delta pipelines network will be a key step towards linking
Xuzhou
and diesel pipeline linking Changsha and Suqian its oil products pipeline grids in south,
Huaian
Chenzhou in Hunan province in south Yan Cheng southwest, central, east and north China.
central China in June. Sinopec opened Jiangsu
Sinopec is now turning its attention
Taizhou
the 54,000 b/d Xiangtan-Loudi leg of its Nanjing to construction of a network around the
Hunan pipeline network in February. The Yangtze river delta provinces of Jiangsu
Changzhou
Shanghai
Suzhou

366km Changsha-Chenzhou and 116km Anhui


Jiaxing
and Zhejiang. It is building a 144,000
Xiangtan-Loudi sections tie into an exist- Hangzhou
Shaoxing b/d pipeline in north Jiangsu that is due
Ningbo
ing network that supplies 130,000 b/d on stream this year, and the 130,000 b/d
Quzhou Jinhau
of gasoline and diesel from Sinopecs Zhejiang
Taizhou Ningbo-Taizhou-Wenzhou and 30,000 b/d
160,000 b/d Changling refinery in north Shangrao
Wenzhou Zhuji-Tonglu lines in Zhejiang province that
Hunan to Changsha, Xiangtan and Undergoing construction are expected to open next year (see map).
Operating
Zhuzhou in the south of the province. Fujian Ningde
Planned PetroChina supplied 20pc of Hunans
Fuzhou
The Yn1.74bn ($283mn) Hunan pipe- fuel last year, through its 323,000 b/d
line expansion project, which Sinopec began in July 2011, will Lanzhou-Zhengzhou-Changsha product pipeline, which came
allow the company to consolidate its position as the domi- fully on stream in November. But the firm is focusing its distribu-
nant fuel supplier in the province. Sinopec supplied 140,000 tion improvements on networks linking its refineries in the north-
b/d of gasoline and diesel to Hunan in 2013, accounting for west and northeast to more cities in north and central China.
over 70pc of all fuel consumed in the province. It will cost PetroChinas 280,000 b/d Jinzhou-Zhengzhou project will link
the company $1.15/bl to ship products from Changsha to its refineries in the northeast to markets in Beijing, Tianjin and
Chenzhou by pipeline, which compares with $2.50/bl and Hebei. The pipeline is due to open in September next year.

Sinopec completes Hebei upgrade


Sinopec has finished upgrades at its to process crude with an average 1.5pc
Key new units 000 b/d
Shijiazhuang refinery in Hebei province, sulphur, up from 0.8-0.9pc. This will allow Unit Cap. Completion
lifting its crude unit capacity and adding it to increase the amount of cheaper sour Crude unit 100 Apr
a number of secondary units designed Middle East crude that it can blend with Catalytic cracker 44 Jun
Diesel hydrodesulphurisation 52 2012
to future-proof the plant against incoming low-sulphur west African grades. Sinopec
Kerosine hydrodesulphurisation 12 2012
emissions standards. has also supplied Shijiazhuang 8,000 b/d
Gasoline desulphurisation S-Zorb 30 Apr
Sinopec has installed a 100,000 of low-sulphur crude from PetroChinas Residue hydrodesulphurisation 30 Apr
b/d crude unit lifting primary capacity to Huabei field since last year. VGO hydrodesulphurisation 36 Apr
Continuous reformer 24 Apr
200,000 b/d. But throughputs are unlikely Crude imports for Shijiazhuang will
Gas fractionation 6 Apr
to rise above 160,000 b/d because the be unloaded at the ports of Caofeidian
Polypropylene 4 Apr
plant will not have enough upgrading and Tianjin and sent to Hebei through
secondary capacity to run at full crude the 160,000 b/d Caofeidian-Tianjin- tion near the port (ACP, December, p5).
unit capacity, even after the upgrade. The Cangzhou-Shijiazhuang pipeline. Shijiazhuang will be able to produce
new crude unit was finished in April, when Shijiazhuang will have to share the 40,000 b/d of gasoline and 70,000 b/d
all units closed for turnaround, pending pipeline with the nearby 70,000 b/d of diesel, 8,600 b/d of kerosine and
the completion of a new catalytic cracking Cangzhou refinery. Cangzhou used to 14,000 b/d of LPG, with crude through-
unit last month (see table). Sinopec will import crude through Huangdao port in puts of 160,000 b/d after its expansion.
begin test runs at the upgraded refinery in Shandong province, but Sinopec closed Gasoline and diesel output will be com-
August, a month later than planned. the Hangdao-Dongying crude pipeline in patible with the 10ppm cap on sulphur
The upgrades will allow Shijiazhuang November after an explosion on the sec- content in transport fuels.

2014 Argus Media Ltd www.argusmedia.com Page 5


Argus China Petroleum Regulation/Downstream July 2014

Post-Liu era promises tougher regime


The former director of Chinas National Energy Administration Jiemin, and former deputy general manager, Wang Yongchun,
(NEA) under top level planning body the NDRC, Liu Tienan, were expelled from the Communist Party last month. Jiang
was formally charged with taking bribes by a court in northern promoted a number of projects subsequently deemed unfea-
Hebei province last month. Lius downfall appears to signal a sible, including a 400,000 b/d refinery in Taizhou, Zhejiang
change in direction for Chinese energy policy, with far closer province, and its lossmaking 200,000 b/d Qinzhou refinery on
scrutiny paid to likely returns on investment and, in the case of the south coast.
refineries, their ability to produce cleaner transport fuels. Lius replacement, Wu Xinxiong, is focused on renewable
The NEAs remit is implementation of policy drafted by energy and improving urban air quality. Wu champions the
more senior bodies, the NDRC and State Council. But it construction of long-distance, high-voltage transmission lines
accumulated considerable influence over energy policy after supplying Chinas east coast with electricity generated in the
Liu took over running the administration in December 2010. coal-rich northwest, although there are concerns that such
In addition to overseeing Chinas strategic petroleum reserve lines will prove uneconomical.
(SPR) project, it also recommends whether the NDRC approve Liu is one of the most high profile in a string of energy
or reject project proposals by energy companies. officials to be investigated for corruption by the Communist
The NDRC approved 100 energy projects including pipe- Partys central commission for discipline inspection (ACP, May
lines, oil terminals, coal mines, power plants and Sinopecs 2013, p10). A number of NEA officials are still being inves-
300,000 b/d refinery in Zhanjiang in the 12 months to tigated, including deputy bureau chief Xu Yongsheng; new
September 2013, despite concerns about excess refining energy department chief Wang Jun; the NEA Shaanxi branchs
capacity. The NDRC has approved just 22 energy projects deputy leader, Yan Zheng; the director of its nuclear depart-
since September. Liu was dismissed in August. And Beijing ment, Hao Weiping; and the deputy director of its coal depart-
has approved no new refineries since May last year. ment, Wei Pengyuan. Wu is close to retirement age for Chinese
Only 5-6 of PetroChinas refineries are profitable, because bureaucrats and has less power than Liu, who was also deputy
of rising supply and slowing demand for oil products, a com- chairman of the NDRC. The NEA has been stripped of its role
pany official says. The companys former chairman, Jiang in drafting new rules governing crude imports.

Sinopec goes slow on new plants


Chinas oversupply of oil products is over Yn28bn ($4.5bn) and will produce But the company shows little urgency
depressing downstream profit margins more than 180,000 b/d of gasoline, about pushing ahead with the expan-
and putting a brake on new refining diesel and jet fuel combined. The cen- sion project. The NDRC gave Sinopec
projects. Sinopec is poised to reopen tral government, which wants to relo- permission to increase crude distillation
its expanded Shijiazhuang refinery in cate refineries away from urban areas, capacity at its Hainan plant to 260,000
northern Hebei province but it shows is likely to force Sinopec to shut its b/d from 160,000 b/d. But the com-
little eagerness to build a new plant at 270,000 b/d Yanshan refinery in Beijing pany has yet to finalise design work.
Caofeidian, in the same province. And following the start-up of the Caofeidian Ostensibly, this is because Sinopec has
the company appears to be dragging facility (ACP, June, p5). not yet decided whether the project will
its feet over a proposed expansion of its The Caofeidian refinery, which was be integrated with a 50,000 b/d ethylene
160,000 b/d refinery on Hainan island in to begin operations next year, is now cracker.
south China. likely to be delayed to 2017. Caofeidian It is more likely to reflect a 2pc
The Caofeidian government has is likely to process Saudi crude grades reduction in Sinopecs refining seg-
lobbied the company to build the refin- Arab Light, Arab Medium and Arab ment capital expenditure this year, to
ery. The proposed 240,000 b/d plant Heavy when it opens. Sinopec will delay Yn25.5bn (ACP, April, p12). Company
is going through the final stages of any decision about whether to build an chairman Fu Chengyu warned that
securing approval of its environmental ethylene cracker alongside the refinery the refining sector faces a build-up
impact assessment, which is a crucial until the feedstock slate is confirmed, in excess capacity comparable with
step before Chinas top economic plan- although it plans to go ahead with a that now facing Chinas steel sector.
ning body, the NDRC, gives approval to 20,000 b/d paraxylene unit. The 200,000 b/d Shijiazhuang refinery
begin construction. Sinopec had received all the upgrade was originally due to come on
But Sinopec looks reluctant to com- approvals necessary to expand its refin- stream last year but is now expected to
mit to the plant, which is likely to cost ery on Hainan island by May last year. start up in August (see p5).

2014 Argus Media Ltd www.argusmedia.com Page 6


Argus China Petroleum Imports July 2014

Hopes fade for market opening


The prospect of Chinas teakettle refining sectors gaining PetroChina and Sinopec emerged as early opponents to
crude import rights seems as remote as ever. A number of tea- the governments proposal to relax crude import restrictions
kettle refiners applied to the NDRC for crude import rights in (ACP, October, p1). And they are likely to have been a major
April but received no response. Top economic planning body factor in discouraging the NDRC from pursuing the NEAs
the NDRC appears to be obstructing efforts by the National draft proposals, according to an official from smaller state-
Energy Administration (NEA) to liberalise the crude import owned oil company Sinochem.
regime, a move that is likely to restrain crude imports and sup- Sinochem has a 20pc stake in the 120,000 b/d Hongrun
port demand for fuel oil. refinery. The Heze Dongming, Hongrun, Haihua, Jingbo and
Beijing restricts crude imports to five large state-controlled Ningxia Baota refineries applied to the NEA for quotas to pro-
oil firms and specifies which refineries are allowed to process cess a combined 430,000 b/d of imports. It was expected to
imported oil. This denies access many private-sector and give Dongming and Hongrun 100,000 b/d quotas each.
smaller state-controlled firms access to crude, prompting
them to crack straight-run fuel oil instead. Teakettle refining Power shift
margins are $4.40/bl higher from crude than from fuel oil. The NDRC proposals will weaken the powerful NEA. This is
The NEA produced draft guidelines in October last year likely to be a deliberate attempt by the NDRC to reduce the
setting out the qualifications for crude import rights. These influence of its subsidiary agency.
were superseded by new draft guidelines published by the Former NEA chairman, Liu Tienan, was one of the most
NDRC in April requiring the closure of antiquated refining units high profile officials charged as part of President Xi Jinpings
and construction of gas storage facilities in exchange for crude purge of corrupt communist party officials (see p6). Liu was
import rights (ACP, May, p8). The NDRC has instructed its replaced with current chairman Wu Xinxiong in May last year.
internal economics and information bureau to take over draft- Liu was also vice chairman of the NDRC, but Wu is not.
ing changes to crude import rules and, ultimately, powers to Beijing awarded a number of refiners under state-owned oil
award quotas. Meanwhile, local governments rather than the firm ChemChina, a combined 200,000 b/d crude import quota
NEA will oversee enforcement of the rules. in 2012. ChemChina has since emerged as a major importer of
Refiners seeking imported crude will now have to submit a Russian ESPO Blend crude (ACP, March, p6). Chinas fuel oil
new set of documents demonstrating how they meet a different imports have fallen since ChemChina received its quota. Heze
set of criteria. They also face a lengthy wait for the government Dongming appears to be refining imported crude supplied by
to confirm that they have shut outdated capacity, as required. PetroChina without a quota (see p15).

Iraqi crude supply to remain below target


Chinese oil firms have lifted their imports another 3mn bl this month. refinery in southern Guangxi province is
of Iraqi crude by almost a quarter from Escalating violence in Iraq has being retooled to process high-sulphur
last year, but Baghdads hopes of boosted crude prices. But CNPC is more Iraqi crude. But it will only be ready to
becoming Chinas second-largest crude concerned about the ability of existing make the switch from its current slate
supplier this year may not be realised. infrastructure in the south to increase of Angolan and Australian grades in
Imports of Basrah Light rose by loadings than it is about the advance of September-October.
115,000 b/d in January-May from a year Sunni insurgents in the north. This has State-owned oil company Sinochem
earlier, to 592,000 b/d and appear to not yet disrupted oil operations in the started selling fuel from its first conven-
have risen by a further 10pc last month largely Shiite south of the country, but tional greenfield refinery at Quanzhou in
from May levels. PetroChina parent com- is distracting the government from the southern Fujian province in April, and
pany CNPC aims to send more of the need to invest in oil export infrastructure. was expected to use Iraqi crude as a
crude it produces from its Iraqi projects Export capacity in southern Iraq is base-load feedstock. But Sinochem has
back to China in the future. This equity 5mn b/d but actual oil exports will remain been struggling to market the 240,000
crude makes up only a small portion of well below this level because of limited b/d plants output and does not have
its term supplies from Iraqi state-owned onshore tank storage in the Fao penin- an export licence to sell fuel overseas
crude marketer Somo. CNPCs trading sula. Southern Iraq needs more pipe- (ACP, May, p10). The firm is expected
unit, ChinaOil, lifts about 2mn-4mn bl/ lines connecting onshore fields with Fao to keep the plants run rates low in the
month. ChinaOil loaded two cargoes, of storage and offshore infrastructure. months ahead, reducing its demand for
1mn bl and 2mn bl, in June and will load PetroChinas 200,000 b/d Qinzhou additional Iraqi crude.

2014 Argus Media Ltd www.argusmedia.com Page 7


Argus China Petroleum Downstream July 2014

Teakettles eye next challenge as debt woes grow


Chinese teakettle refineries are grappling with a massive debt handful of smaller refiners have been given these coveted
hangover and there are few signs that they will recoup quotas. Norinco, linked to Chinas military, has a quota to
recent years heavy investments in crude distillation capacity. process 150,000 b/d of imported crude for its 120,000 b/d
But they will still have to keep investing as the central govern- Huajin refinery. State-owned oil firm ChemChina received a
ment upgrades national fuel standards. 200,000 b/d quota in March last year (ACP, November 2012,
The crisis at one such refiner, Haike Chemical, last month p6). Private-sector company Xianglu Petrochemical has a
has thrown a spotlight on the plight of teakettle refineries. quota allowing its Tenglong paraxylene plant in southern
Haike, which is based in eastern Shandong province, made Fujian province to process 92,000 b/d of condensate (ACP,
a loss of Yn709mn ($115mn) last year, more than double its December, 2012, p10).
loss the previous year, and completed a restructuring aimed Fears of a government clampdown on small units may
at forestalling its delisting from the London Aim stock market. have receded, but the focus of official regulation has now
Haikes debts outweighed its equity by a net Yn977mn at switched to fuel quality. Teakettle refiners must look ahead to
the end of last year. The refining division, which accounted for the nationwide roll-out of the China 4 emissions standard cap-
three-quarters of group revenues ended up making a loss of ping sulphur content at 50ppm by 31 December and the China
Yn643mn because utilisation rates at its Haike Petroleum and 5 standard which comes into force in 2017, capping sulphur
Ruilin Chemical refining units were so low, and because over- content at 10ppm. This will require yet more expenditure by the
supply of oil products depressed domestic spot prices. Haike cash-strapped firms.
procured 5.5mn t of crude and fuel oil feedstock last year but Hi-Tech Chemical has approval from the environment min-
resold, rather than refined, 77pc of it. istry for upgrading projects worth Yn536mn, which will allow
Haikes parent, Hi-Tech Chemical Investment, acquired the it to reduce sulphur content in diesel to 10ppm. But this will
most unprofitable assets including the refining assets with net increase its Yn10.3bn debt reported at the end of last year.
assets of a negative Yn1.25bn for a symbolic HK$1 (13) on 15
May. Haike Petroleum and Ruilin comprise upgrading units of Investment risk
40,000 b/d and 60,000 b/d capacity, respectively. Ruilin opened Haikes indebtedness is not unusual. Chinas main teakettles
a new 60,000 b/d crude unit last month. The plants produced with a combined 1.13mn b/d of distillation capacity issued
10ppm sulphur gasoline and 50ppm sulphur diesel. Yn14.5bn of domestic bonds falling due in 2012-14 (see table).
Haike plans to focus on speciality chemicals. But Hi-Tech They pay coupons of 4-9pc on their bonds, reflecting average
Chemical is likely to have to run the refineries as normal. Idling debt-to-asset ratios of 60-70pc. But the risks to lenders may be
them would force Hi-Tech to write down their value as assets, higher as, often, over half of their equity is pledged as collateral
potentially preventing it from refinancing bank debt. for bank loans and loan guarantees for associated companies.
Teakettle refineries borrowed heavily to pay for expansions The Shandong teakettle sector added around 315,000 b/d
to their crude processing capacity in recent years. This followed of crude distillation capacity in the 12 months to June, and now
government threats to close any refinery with less than 40,000 has 2.58mn b/d of capacity in total. Around 130,000 b/d of the
b/d capacity by the end of last year. Beijing appeared to grant a latest additions had been delayed from the previous 12 months.
reprieve amid concerns that driving them out of business could The Shandong sector is due to expand by a further 350,000 b/d
be disastrous for their creditors mostly banks and local by December 2015, more than half of which is delayed.
government tax revenues (ACP, September, p8). Most expansion plans are focused on upgrading capacity,
Refining margins on fuel oil, the main teakettle feedstock, primarily hydrodesulphurisation units to desulphurise motor
are negative. But teakettle refiners hopes of ever receiving fuels, and petrochemical units, in particular TMP units. These
quotas to process crude import are fading (see p7). Only a help boost output of propylene and high-octane gasoline.

Main teakettle refinery operators


Crude unit cap. Utilisation Debts Assets Debt-to-asset Bonds falling due
Company Gross margin
000 b/d rate % Yn bn Yn bn ratio % in 2012-14 Yn bn
ChemChina Oil and Gas 552,000 49% in 2012 25.4 36.3 70 5% for 2013 7.5*

Heze Dongming Petrochemical 230,000 49% 11.8 18.1 65 4% for 2013 2.4

Shandong Qingyuan 56,000 35% 4.46 7.34 61 7% in 1H13 0.4

Langbridge 70,000 na 11.13 17.94 62 9% in 1H13 1.0

Shandong Kenli Petrochemical 90,000 47% 7.98 12.17 66 10% in 1-3Q13 1.4

Ningxia Baota Petrochemical 130,000 40% 20.43 34.72 59 12% in 1H13 1.8

*issued by parent company ChemChina estimate under construction

2014 Argus Media Ltd www.argusmedia.com Page 8


Argus China Petroleum Shale/Petrochemicals July 2014

Fuling debate revives shale worries


The success of Sinopecs Fuling gas project has reinvigorated The dispute may rumble on inconclusively. But regardless
Chinas shale gas production ambitions. But a controversy of whether Fuling is a true shale formation, it is becoming clear
has erupted local geologists this month took to Chinas that its geology makes it far more suitable for gas develop-
microblogging site Weibo to argue that the block is not a true ment than other shale blocks and that its success will be hard
shale formation. to duplicate elsewhere. China will struggle to lift shale gas
If Fuling is not the technical breakthrough in indigenous output beyond the 10bn m/yr anticipated from Fuling by 2017,
shale development that many had hoped for, then lessons if the latter is its main driver of shale gas output.
learned there may be inapplicable to actual shale blocks in There appears to be little enthusiasm for shale gas pro-
China, dashing hopes of a shale gas revolution comparable jects elsewhere. PetroChina aims to produce 2.6bn m/yr of
with that of the US. And it raises doubts about whether the shale gas by 2015, 73pc more than initially projected. But its
block is eligible for shale gas production subsidies, although investment budget for shale remains relatively modest. It plans
Sinopec insists that it meets the criteria. to spend 2.2pc of its upstream capital expenditure on shale
Fuling produces 3.1mn m/d of gas far more than other gas in 2014-15.
shale blocks in southwest Chongqing municipality. But much of
what Fuling produces is tight sandstone and conventional gas, Fuling some of the people
a number of oil services executives say. Tight gas is less com- A third round of shale gas auctions has been delayed again,
plex to extract than shale gas, although both use hydraulic frac- from the first quarter. The two previous rounds attracted fair
turing. Fuling has been approved as a shale gas pilot zone by amounts of interest but auction winners have been slow to start
the National Energy Administration, a unit of top economic plan- drilling just two wells at the 21 shale blocks auctioned since
ner the NDRC, Sinopec says in its response to the controversy. 2011. One, in Chongqing, is operated by Sinopec, while domes-
The NDRC has indicated that it wants to increase its tic firm Huaying Shanxi Energy Investment is developing the
shale gas production target for next year to 7.6bn m from an other, in Guizhou, southwest China. The reluctance of licence-
original goal of 6.5bn m set in 2012, but has yet to confirm holders to begin work partly reflects the economics of shale gas
the new targets. They look ambitious, especially if a portion of development in China. A shale gas well costs Yn50mn-70mn
Fulings output is counted as conventional. Sinopec aims to ($8.1mn-11.3mn) to drill, far more than conventional wells. The
produce 1.8bn m of shale gas in 2014, 5bn m in 2015 and government is supposed to subsidise shale gas production, but
10bn m/yr by 2017, mainly from Fuling (ACP, March, p10). such subsidies are seldom paid on time.

China looks to US for gasoline blendstocks


The worlds largest producer and con- a by-product of shale gas. In China, it MTO and MTP projects. These will need
sumer of methanol, China, will be vital to is used to produce octane-enhancer 150,000 b/d of methanol this year, rising
absorbing the US surplus methanol out- MTBE as well as dimethyl ether, which is to 1mn b/d by 2035, Argus JJ&A says.
put after 2018, a new study by Argus Jim blended into LPG and methanol-to-ole- Methanol costs some $25/bl to
Jordan & Associates (JJ&A) suggests. fin (MTO) and methanol-to-propylene produce in the US when gas prices
China already accounts for 51pc (MTP) petrochemical projects. are $5/mn Btu. Costs can be around
of global methanol consumption of 50pc higher in China where metha-
1.4mn b/d and 52pc of global supply China methanol forecast 000 b/d nol is produced from coal which
2013 2014 2018 2035 CAGR %*
of 1.4mn b/d. But its share of global becomes scarce in winter and gas,
Production 627 719 1,257 1,737 4
consumption will exceed 60pc by Imports 105 115 263 560 7 which is pricier than in the US.
2035, while its share of production will Exports 17 10 4 4 -4 China currently imports methanol
be just under 50pc. Apparent demand 749 843 1,525 2,301 5 from several countries including Iran,
*compound annual growth rate for 2014-35
China will need to step up imports Oman, Qatar, Saudi Arabia, Brunei,
to meet its growing supply gap (see Many states in the US have passed Indonesia and Malaysia. It imports only
table). And in the US, producers aim to laws limiting or banning the use of MTBE a negligible amount from the US. But
bring 174,000-220,000 b/d of new meth- in gasoline because of water contamina- becoming dependent on US exports
anol capacity on line by 2018, although tion. But Chinas use of MTBE is expected carries its own risks. US consumption is
domestic demand is expected to rise to rise, in response to concerns about expected to rise after 2020, as demand
only modestly. worsening urban air quality. China will for applications such as fuel blending
Methanol is produced in the US as also require more methanol to fuel its rises, tightening export availability.

2014 Argus Media Ltd www.argusmedia.com Page 9


Argus China Petroleum Regulation/Downstream July 2014

Audit may draw a line under CNPCs woes


CNPC has come under renewed criticism from the government Parts of the latest audit refer to offences committed as far
after an audit of its business in 2012, which found myriad cases back as 2006 approximately covering the period of dis-
of misreported profits, best-practice business failings and abuse graced former chairman Jiang Jiemins time at the helm. He
of commercial regulations. The report, by Chinas National Audit became general manager of CNPC in 2006 and left in March
Office (NAO), follows accusations of similar failings by the oil last year to head Sasac.
giant in 2010. CNPC insists that it is cleaning up its act. Nine CNPC units paid Yn26bn over the odds for goods
The NAO has recovered Yn3.3bn ($530mn) in losses after and services procured without open tenders in 2006-13.
an audit of 11 so-called yangqi firms those owned and CNPC built a number of projects without official approval
directly supervised by state-run assets regulator Sasac it during Jiangs tenure, including a Yn2.13bn gas storage facil-
said in June. The NAOs probe has led to the censuring of 190 ity at Liaohe in northeast China, one of two fields where it is
workers at state-run firms including 32 senior officials. expected to solicit private-sector investment (ACP May p7).
In CNPCs case, the audit covered 20 subsidiaries control- Problems were rife in northeast China, at its oil fields and
ling over half of the groups assets. In 2012, CNPC misrepre- refineries in Jilin and Liaoning provinces. A number of CNPCs
sented profits, debt levels and asset values, the NAO says. It Kunlun subsidiaries came in for heavy criticism because of
sustained losses of Yn1bn as a result of investments made losses totalling Yn661mn. CNPCs chief financial officer and
without following due procedure and improperly rewarded Kunlun Energys chief executive, Wen Qingshan, resigned
employees and associated parties. unexpectedly in December last year (ACP, January, p7).
Half of the 20 CNPC subsidiaries were found to have mis- CNPC, under its new management team led by chairman
calculated revenues, inventories and expenses, resulting in an Zhou Jiping, says it has addressed most of the problems identi-
understatement of profit of Yn603mn in 2012-13. This deprived fied by the NAO. It has promised to strengthen internal controls
the state of Yn90mn in dividends, although overall dividend and Sasac has established an eight-member board of directors
payments still met the minimum 15pc threshold for yangqi firms. for the oil company of which five are independent. The NAOs
The NAO accuses CNPC of selling gas and oil products at report may draw a line under the investigations into CNPC
below-market rates to associated companies, but of breach- Chinas petro-purge which helped trigger a change in the
ing the caps on fuel prices set by the central government in companys strategy. Zhou vowed to target efficiency over scale,
times of supply tightness. Other illicit dealings netted CNPC rein in CNPCs domestic refining ambitions and refocus on
employees Yn100mn in benefits, the NAO says. overseas oil and gas production (ACP, March, p9).

Qinzhou refinery to muscle in on diesel exports


PetroChinas embattled 200,000 b/d for the fuel in the province is 125,000 new 160,000 b/d jet desulphurisation
Qinzhou refinery in southern Guangxi b/d. Sinopec makes up the small local unit in December last year. Most of its
province is becoming a regular exporter deficit from its refineries in neighbouring jet fuel is still sold to blending com-
of diesel, adding to already-growing Guangdong province. panies through monthly tenders as a
Chinese exports of the fuel. PetroChina finished construction diesel blendstock. The resulting fuel
The refinery exported its first 270,000 of a new diesel hydrodesulphurisa- can be sold as diesel compatible with
bl diesel cargo in March and plans to tion unit in March, enabling it to pro- the China 4 diesel vehicle emissions
ship a similar amount to Singapore this duce 10ppm diesel (ACP, May, p9). standard, but is not liable for consump-
month. PetroChina has so far domi- Previously, Qinzhou could only produce tion tax.
nated gasoline exports and played a off-specification diesel, which it sold to PetroChinas former management
far smaller role than rival Sinopec in private-sector fuel blending companies. considered Qinzhou a vital beach-
exporting diesel to other markets in The Qinzhou refinery began exporting head in Chinas coastal fuel markets,
Asia-Pacific. But the ministry of com- gasoline soon after it came on line in which are dominated by Sinopec (ACP,
merce this year substantially expanded late 2010. It shipped about 8,000 b/d September, p5). But the plant has sub-
PetroChinas diesel export quota (ACP, overseas in 2013 and almost double sequently operated at a loss, raising
January, p1). that, or 15,000 b/d, in January-May questions about the wisdom of siting it
Sinopecs 100,000 b/d Tieshan this year. All of the exported gasoline near a shallow water port which cannot
refinery, also in Guangxi, and headed for Singapore. receive very large crude carriers and in
PetroChinas Qinzhou plant, together The Qinzhou plant still has no plans areas where there is already a dominant
produce 115,000 b/d of diesel. Demand to export jet fuel although it opened a market incumbent.

2014 Argus Media Ltd www.argusmedia.com Page 10


Argus China Petroleum Downstream July 2014

Fuel upgrades to squeeze domestic demand


China is expected to make cheap funding available to compa- the operating rates of their upgrading units to minimise costs.
nies aiming to build new refineries, a document leaked in June The NDRC will start adjusting regional variations next
from top economic planning body the NDRC suggests. year, when the 10ppm sulphur standard will come into force
This is part of the governments policy of hastening the in all coastal markets. Subsidising construction of newer
switch to ultra-low sulphur transport fuels. Beijing previously refining units that produce only cleaner fuels would be
said it would tighten funding to sectors considered to have cheaper, over the long run, than rigorously monitoring vari-
excess capacity, such as refining and able fuel quality, it says.
steel manufacture. But the NDRC looks NDRC-backed refineries 000 b/d The NDRC last month instructed oil
Increase
likely to soften this hardline stance for Refinery Owner
000 b/d
Start-up firms to complete refinery expansions
refineries that would produce gasoline Huabei CNPC 100 2015 and upgrades in coastal areas, to ensure
and diesel with no more than 10ppm Zhenhai Sinopec 300 2015 supply of 10ppm fuels by the end of next
sulphur, allowing them access to cheap Zhanjiang Sinopec-KPI 300 2017 year (ACP, June, p10). Key projects to be
Jieyang CNPC-PdV 400 2017
credit. Such state support would make it completed next year include a 100,000
Huizhou CNOOC 200 2015-16
more economic to build new crude units b/d expansion at CNPCs 100,000 b/d
Caofeidian Sinopec 240 2016-17
rather than upgrade existing ones, oil Huabei refinery and a 300,000 b/d
Luoyang Sinopec 200 2016-17
company officials say. increase at Sinopecs 460,000 b/d
Jingmen Sinopec 100 2016
Chinese refining capacity will grow Karamay CNPC 80 2017
Zhenhai plant (see table).
by 690,000 b/d this year. Of this figure, The government sets higher fuel
520,000 b/d has already come on line but is operating at low prices for cleaner fuels, to compensate refiners for their
utilisation rates. Capacity will rise by another 790,000 b/d in increased investment and operating costs. But higher prices
2015 if the NDRC makes good on its promises of financial appear to act as a brake on consumer demand growth,
support. Capacity additions are likely to boost supply of clean prompting companies with export quotas PetroChina and
fuels by 600,000 b/d in 2014 and 650,000 b/d in 2015, assum- Sinopec to seek overseas markets for surplus fuel. Year-on-
ing a utilisation rate of 83.5pc and an 64.5pc yield of gasoline, year gasoline demand growth slowed to 10pc in January-May
diesel and jet fuel. from 14pc over the same period a year earlier, after the nation-
Oil firms must sell diesel and gasoline compatible with the wide cap on sulphur content at 50ppm in January this year.
China 5 vehicle emissions cap on sulphur content at 10ppm in PetroChina predicts that exports of gasoline, diesel and jet fuel
Beijing, Shanghai, Guangzhou and Nanjing. But they are still will average 480,000 b/d in 2015, up by a third from forecasts
selling higher-sulphur fuels outside these major cities, adjusting of 350,000 b/d net exports this year.

ESPO and Urals cfr China difference $/bl


Urals discount boosts Sinopec buying
Sinopec has been snapping up cargoes b/d in August not all of which will ship to
ESPO differential to Urals* $/bl
of Russian Urals crude on the spot China. Unipecs June purchases were 4
market, but is struggling to finalise a double the January-August average of 3
*cfr China

long-term crude supply agreement with 80,000 b/d. And Sinopec refined only 2
Russian state-controlled oil firm Rosneft. 25,000 b/d of Urals in January-June this 1
Urals = 0
Sinopec will receive about 170,000 year, up from 23,000 b/d a year earlier. 0

b/d of Urals crude this month, most of Sinopec compares the price of Urals -1

which will go to its 460,000 b/d Zhenhai with the price of Russian ESPO Blend -2

refinery in Zhejiang province. Trading crude fob Kozmino, to decide whether -3


2013 2014
arm Unipec bought at least 75,000 b/d to lift Urals purchases. It may ask Unipec
of Urals loading from Baltic ports and to buy Urals when the grades delivered refiners. Sinopec last year agreed a
70,000 b/d loading from Mediterranean price is over $2/bl lower than the cost of preliminary deal to buy 200,000 b/d
ports on the spot market in June. ESPO Blend as it did in January and of crude from Rosneft. But it doubts a
Unipec stepped up its Urals buying July this year (see graph). The company final agreement will be signed this year
in June as prices for the grade fell to a loaded 120,000 b/d of Urals in January. because the two sides have failed to
two-year low in response to weak refin- Unipec is a major buyer of Urals on agree on pricing. Rosneft is likely to
ery demand in Europe. It has reduced the spot market in northwest Europe supply Urals and other grades, rather
buying since then, and will load 50,000 but resells most cargoes to regional than ESPO Blend, under this deal.

2014 Argus Media Ltd www.argusmedia.com Page 11


Argus China Petroleum In brief July 2014

Sinopec eyes new product markets retail sector. PetroChina and Sinopec CNOOC will now oversee phase 3 of
Sinopec is increasing exports of jet fuel occupy the most lucrative sites, and it the Penglai development programme.
to the US as it struggles to find buyers has proved too costly to acquire pri- Production at Penglai was supposed to
for the product in Asia-Pacific, where vate-sector sites. CNOOC operated 445 rise to 180,000 b/d by the end of 2010
jet fuel premiums to Dubai crude have stations at the end of last year. Three- but icy conditions in the Bohai bay and
weakened steadily all year. The company quarters of CNOOCs retail stations are an oil leak in 2011 delayed, and then
shipped a 240,000 bl cargo of the fuel joint ventures with private-sector firms, derailed, CNOOC and ConocoPhillips
to Alaskas Anchorage port this month. but Tafo offers a joint venture in which production plan (ACP, August 2011, p11).
Sinopec began shipping small amounts CNOOC will not have to invest. There The US firm later said the need to reduce
to the US and Canada in June 2013. are reputational risks associated with water injection into the Penglai wells, to
State-owned jet distributor China National franchising, if private-sector partners do prevent future leaks, would cap output
Aviation Fuel handles most jet fuel sales not adhere to government rules and at current levels of around 100,000 b/d
for Sinopec. But domestic supply has standards. PetroChina and Sinopec (ACP, June 2013, p5). CNOOC plans to
overtaken demand, pressuring sales mar- have largely abandoned retail franchis- raise upstream capital expenditure this
gins. Sinopecs US shipments come from ing operations. But CNOOC is trying to year to arrest its production woes. Last
its 380,000 b/d Jinling refinery in eastern catch up with its rivals retail expansions. year, production of oil and gas in its core
Jiangsu province. Jiangsu capped sul- It aims to operate 600 retail stations by Bohai fields fell for the first time.
phur content in diesel. Desulphurising its the end of this year and 800 by the end of
distillate stream allowed Jinling to pro- 2015. State-owned Sinochem has devel- CNOOC buys new deepwater rigs
duce export-quality jet fuel. oped a retail network. Shell, which now CNOOCs oil field services unit, COSL,
operates around 1,100 retail stations i has started construction of another
Sinopec to sell lubricants business China, set up a retail venture in southern deepwater drilling rig, the Hai Yang Shi
Sinopec has carved its lubricant business Guangdong province with state-owned You 982, which will be ready by the
into a separate company, paving the Yanchang Petroleum in May. second half of 2016. The semi-submers-
way for its stock market listing. Sinopec ible drilling rig, being built in Dalian, is
listed its Sinopec Engineering unit in Tests start at new Shandong berths capable of operating in water depths of
Hong Kong last year, raising HK$13.7bn Sinopec and Qingdao Port, operator of 1,500m, and can drill up to a depth of
($1.8bn), less than it hoped for (ACP, Dongjiakou port in Qingdao city, have 9,100m. CNOOC deployed its first ultra-
October, p6). Sinopec Lubricants busi- started testing a newly-built 2.19mn bl deepwater drilling rig, the Hai Yang Shi
ness now includes lubricant manufac- crude terminal, a 786,000bl oil products You 981, in May 2012. In May this year, it
turing, research, storage, transportation terminal and 300,000 bl of crude storage triggered a dispute between China and
and sales, and is the largest lubricant tanks. Commercial operations will start Vietnam, after CNOOC moved the rig
manufacturer and distributor in Asia- in December. The terminals will be able into waters claimed by Vietnam near the
Pacific, active in more than 50 countries. to handle 360,000 b/d crude and 86,000 Paracel islands. Hai Yang Shi You 981,
Sinopec is also in the middle of restruc- b/d of oil products. The new facilities will which CNOOC referred to as a strategic
turing its oil field services business into a help ease congestion around the port weapon, can operate at water depths of
new unit, which it also hopes to list. The of Huangdao, which suffered a major 3,000m and drill to depths of 10,000m.
company announced a framework for a explosion last year (ACP, November, p5). COSL has commissioned two additional
sale to the private sector of a 30pc stake A number of refineries agreed to relo- rigs capable of drilling to 10,000m to be
in its newly created marketing and retail cate to Dongjiakou by 2016 after the delivered by the fourth quarter of next
company last month. blast, including Sinopecs 100,000 b/d year. Most of CNOOCs output comes
Qingdao Petrochemical plant. Sinopec from shallow fields in the Bohai bay.
CNOOC expands retail footprint plans to lay two new pipelines from CNOOC says it needs to explore deeper
CNOOC has signed a deal allowing Dongjiakou one to its 200,000 b/d blocks to achieve an output growth rate
Jiangsu-based private-sector firm Tafo to Qingdao plant and another to its 200,000 of 6-10pc/yr in 2011-15.
retail CNOOC gasoline and diesel. Tafo b/d Luoyang refinery.
operates nine retail stations in eastern Argus Mideast Gulf and Indian
Jiangsu province. It will sell fuels pro- ConocoPhillips cedes Penglai control Ocean Oil Conference 2014
duced by CNOOC of the same quality US firm ConocoPhillips has given up
27-29 October 2014 Jumeirah Emirates
and to the same standards as those control of the troubled Penglai 19-3 off-
Towers, Dubai, UAE
sold under the CNOOC brand. CNOOC, shore field in north Chinas Bohai bay.
The Middle East market comes of age
which has a large portfolio of oil and ConocoPhillips retains a 49pc stake but
opportunities and challenges?
gas production and refining assets, is on 1 July handed over operatorship of
www.argusmedia.com/amgio
struggling to expand into the domestic the project to CNOOC, which has 51pc.

2014 Argus Media Ltd www.argusmedia.com Page 12


Argus China Petroleum Markets/Refining July 2014

June imports fall before peak maintenance


Chinese net crude imports fell sharply in June from May, But refinery runs over the same period have risen by just
before this months heavy refinery maintenance programme. 80,000 b/d, equivalent to 1pc. Much of the difference between
But imports remain sharply up on the year and have strongly imports and runs is likely to be stockbuilding (see p1). Refining
outpaced growth in refinery crude runs. margins remain depressed, keeping a lid on crude runs. These
At least 700,000 b/d of refining capacity will shut in this are estimated at 9.58mn b/d in July, fractionally down on June
month. PetroChina shut its 320,000 b/d Lanzhou refinery
Year-on-year in and
change littleprices
product changed from the year-to-date average of 9.67mn b/d.
western Gansu province, and the plant Chinese spot prices for gasoline
will remain closed for some of August. Year-on-year fuel price changes* $/bl and diesel fell on the year in February-
10
Sinopecs Shijiazhuang refinery remains *Pearl river delta June but diesel nudged higher in July
Gasoline
partially closed after an expansion and 5 Diesel
(see graph). The improvement in Chinas
upgrading project (see p5). keenly-watched diesel prices reflects
Shijiazhuang will be able to process 0
a modest upturn in industrial activity
more sulphurous, imported crude from in north China, the strength of recent
-5
August. But the continued closure of exports, and predictions that the govern-
Sinopecs 280,000 b/d Shanghai Jinshan -10 ment will raise regulated prices later this
Jan 14 Feb Mar Apr May Jun Jul
refinery will partly offset the increase month. Gasoline markets are weaker.
in demand from Shijiazhuang next month. Jinshan will keep Prices rose in southern Guangdong province after a switch to
55,000 b/d of capacity off line in August, almost equivalent to higher-cost 10ppm sulphur fuel this month, but fell elsewhere.
the 60,000 b/d net increase in capacity at Shijiazhuang. July crude imports are likely to be higher than June.
Crude net imports fell to 5.69mn b/d last month. This was Chinese oil firms loaded 487,000 b/d of Basrah Light in June for
a drop of 450,000 b/d from May levels, but a 290,000 b/d July delivery, up by 10pc from loadings in May for June deliv-
increase from June a year earlier. Net imports in the first half of ery. Loadings of west African crude in June also rose by 10pc
this year of 6.11mn b/d were higher by 530,000 from January- from May levels, to 1mn b/d. July loadings are also 1mn b/d.
June 2013. Overall crude supply net imports plus production Refinery shutdowns in August, when many of these cargoes will
is almost 580,000 b/d higher. arrive, are scheduled to be just 145,000 b/d.

Exports boost fuel prices


Fuel prices on Chinese spot markets ral- the NDRC in response to stronger inter- Partly this appears to reflect unsea-
lied this month after a weak performance national crude prices. But the key factor sonably high temperatures, which have
in June. Diesel prices rose more steeply pushing up prices is likely to be stronger deterred car owners from making unnec-
than prices for gasoline. But trading exports. Sinopec and PetroChina essary road trips. It may also reflect the
companies in the main Pearl river delta together exported 110,000 b/d of diesel increase in regulated prices that followed
market in south China remain pessimis- in June, up by 15,000 b/d from May. a switch to 10ppm sulphur standard
tic about the prospects for a sustainable Sinopec will lift exports again in the third gasoline in Guangzhou, capital of south-
rebound in oil demand growth. quarter. But PetroChina may have to cut ern Guangdong province, on 1 July. The
Chinas manufacturing sector pur- exports after a fire at its 410,000 b/d local government sets China 5 gasoline
chasing managers index, a forward indi- Dalian refinery in northeastern Liaoning prices Yn0.3/l ($7.60/bl) above prices for
cator of economic activity, rose for a province, a major export hub. China 4, with 50ppm sulphur content.
fourth month to 51 points in June, up Gasoil prices in the Yangtze river Imports of mixed aromatics, used by
by 0.2pc from a year earlier. Consumer delta market rose to $164.03/bl in June private-sector firms to produce cheap
inflation rates are rising, but remain low, from $163.84/bl in May. They rose to gasoline, fell in June to 156,000 b/d from
and producer prices continue to deflate. $163.29/bl from $162.92/bl in the Pearl 189,000 b/d in May. Consumers are still
Spot prices have begun to rally, this river delta. Diesel prices in the Pearl flocking to blending firms for fuel, shun-
month, registering their first year-on-year river delta fell, on a year-on-year basis, ning retailers selling conventional refinery
increase since January. Manufacturing consistently in February-June, driving gasoline. But the strength in imports may
and mining sector activity in eastern producers to seek export markets. be partly motivated by suspicions that
Shandong province has picked up. And Gasoline demand has been weaker Beijing will try, again, to collect consump-
refiners are predicting an increase in reg- than expected and prices in the two del- tion tax on mixed aromatics, eroding its
ulated prices by top economic planner tas were unchanged from May, in June. cost advantage over refinery gasoline.

2014 Argus Media Ltd www.argusmedia.com Page 13


Argus China Petroleum Product prices July 2014

Chinese ex-refinery gasoline differential to Singapore $/bl Chinese retail price caps Yn/t
90 Ron gasoline^ 350ppm diesel^
60
10 Jul 10 Jun 10 Jul 10 Jun
50 Northeast: Heilongjiang 9,735 9,570 8,610 8,450
92 Ron gasoline fob Singapore = 0 Jilin 9,735 9,570 8,610 8,450
40 Liaoning 9,735 9,570 8,610 8,450
30 North: Beijing 9,940 9,775 9,175 9,015
Tianjin 9,735 9,570 8,610 8,450
20 Hebei 9,735 9,570 8,610 8,450
10 Shanxi 9,805 9,640 8,665 8,505
Hohhot 9,750 9,585 8,625 8,465
0 East: Shanghai 9,920 9,755 9,145 8,985
Jiangsu 9,790 9,625 8,650 8,490
-10
Zhejiang 9,790 9,625 8,665 8,505
-20 Shandong 9,745 9,580 8,620 8,460
Jan 13 Apr Jul Oct Jan 14 Apr Jul
Central: Hubei 9,760 9,595 8,635 8,475
VAT and consumption tax have been deducted from Chinese prices Hunan 9,800 9,635 8,695 8,535
Henan 9,755 9,590 8,630 8,470
Anhui 9,785 9,620 8,660 8,500
Jiangxi 9,790 9,625 8,670 8,510
South: Guangdong 9,815 9,650 9,050 8,890
Chinese ex-refinery diesel differential to Singapore $/bl Hainan 9,880 9,715 9,115 8,955
50 Guangxi 9,880 9,715 8,745 8,585
Southwest: Chongqing 9,950 9,785 8,820 8,660
40 Ningxia 9,740 9,575 8,610 8,450
Gansu 9,720 9,555 8,630 8,470
30
Chengdu, Sichuan* 9,955 9,790 8,845 8,685
Chongqing, Sichuan* 9,950 9,785 8,820 8,660
20
Guiyang, Guizhou* 9,915 9,750 8,770 8,610
10 Fujian 9,810 9,645 8,675 8,515
Kunming, Yunnan* 9,945 9,780 8,800 8,640
0 Northwest: Xinjiang 9,515 9,350 8,505 8,345
Xi'an, Shaanxi* 9,720 9,555 8,620 8,460
-10 Gasoil fob Singapore = 0 Xining, Qinghai* 9,700 9,535 8,655 8,495

-20 *Prices are for the listed city, not the province. NDRC guidelines stipulate that the highest
Jan 13 Apr Jul Oct Jan 14 Apr wholesale prices must be at least Yn400/t below maximum retail prices Beijing has
VAT and consumption tax have been deducted from Chinese prices stricter vehicle emissions standards. Prices listed are for China 4 ^Prices apply to fuel
compatible with China 2 vehicle emissions standards NDRC

Chinese ex-refinery jet-kero differential to Singapore $/bl Shandong independent/official price comparison $/bl
6 Jun 13 Jun 20 Jun 27 Jun 4 Jul
20
Gasoline, 90 Ron
Jet-kerosine fob Singapore = 0
10 Lijin* Ex-refinery prices 136.88 136.02 136.36 136.36 135.84
0 NDRC wholesale cap -16.72 -17.59 -17.24 -20.10 -20.62
% of wholesale cap 89.11 88.55 88.78 87.15 86.82
-10
Dongming Ex-refinery prices 143.81 143.81 143.81 143.81 142.95
-20 NDRC wholesale cap -9.79 -9.79 -9.79 -12.65 -13.52
% of wholesale cap 93.63 93.63 93.63 91.92 91.36
-30
Diesel, 500ppm
-40 Lijin* Ex-refinery prices 143.86 144.06 144.25 145.43 144.84
-50 NDRC wholesale cap -8.14 -7.95 -7.75 -9.72 -10.30
% of wholesale cap 94.64 94.77 94.90 93.74 93.36
-60 Dongming Ex-refinery prices 146.22 146.22 147.20 147.79 146.81
Jan 13 Apr Jul Oct Jan 14 Apr Jul
NDRC wholesale cap -5.79 -5.79 -4.81 -7.36 -8.34
VAT and consumption tax have been deducted from Chinese prices
% of wholesale cap 96.19 96.19 96.84 95.26 94.62
High-sulphur fuel oil, 180cst
Binzhou** Ex-refinery prices na na na na na
Independent differential to NDRC price caps assumes a Yn400/t wholesale discount to
Gasoline and diesel net refining margin $/bl retail cap *The 90,000 b/d Lijin Refinery runs a blend of imported straight-run fuel oil
and domestic crude, producing off-specification oil products The 230,000 b/d Heze
30
Dongming refinery receives crude from PetroChina, producing standard and off-specifi-
cation products. **CNOOC supplies the 60,000 b/d Binzhou refinery with crude. It is a
20 key seller of fuel oil, which is used as a primary feedstock by other refiners in Shandong

10 Chinese ex-refinery prices* $/bl


10 Jul 10 Jun %
0
Gasoline, 90 Ron 171.41 168.26 1.87
Diesel, 350ppm 169.83 166.37 2.08
-10 Gasoline
Diesel *The NDRC sets ex-refinery prices. They indicate the level at which refiners must sell products
to the strategic sectors of the economy the armed forces, national rail firms and the oil
-20 products strategic petroleum reserve. Ex-refinery prices also act as a benchmark price for
Jan 13 Apr Jul Oct Jan 14 Apr Jul
*Margin is derived as a 3:2:1 weighting of Chinese gasoline and diesel prices net of taxes and sales to state-owned wholesalers China prices eight different grades of jet fuel, including jet
processing costs as a differential to Argus delivered assessments of Brent, Dubai and Cinta No 1, which is used in large aeroplanes and military jets. The price quoted here is for jet No 1

2014 Argus Media Ltd www.argusmedia.com Page 14


Argus China Petroleum Refining July 2014

Shandong run rates rally despite higher costs


l Teakettle feedstock costs rose in l Diesel demand rose in north China, in processing M-100 fuel oil edged down
Chinas eastern Shandong province after response to stronger mining and manu- by Yn12/t (30/bl) to a notional negative
an explosion at the 130,000 b/d Achinsk facturing activity, supporting spot prices. Yn125/t over the same period.
refinery in east Siberia on 15 June . This Gasoline prices fell, squeezing teakettle
reduced Russian exports of straight-run margins. PetroChina and Sinopec have l The 230,000 b/d Heze Dongming
M-100 fuel oil to China. Prices for local ample stocks, reducing their need for refinery bought 95,000 b/d of crude
Shengli grade crude for June delivery third-party purchases. And supplies of for June delivery comprising offshore
also rose, by Yn46/t ($1.01/bl) from May cheap blended gasoline, produced by China grades, Venezuelan Merey and
to Yn4,965/t. But refiners increased run private-sector companies, remain strong. Abu Dhabi Zakum. It bought just 20,000
rates for a second consecutive month b/d of fuel oil, implying a utilisation rate of
in June because stronger international l Refining margins for teakettles run- 50pc. Overall Shandong utilisation rates
crude prices are expected to trigger an ning Shengli crude fell by Yn38/t (83/bl) were 43pc, equivalent to 860,000 b/d, up
rise in domestic regulated oil products to a notional negative Yn128/t between by 3pc compared with May and by 11pc
prices. 27 May and 17 June. Margins for plants from a year earlier.

Chinese oil products imports and exports 000t


May May/Apr YTD YTD 14/13
Imports Exports Net imports* Dec net imports* 000t % Imports Exports Net imports* YTD 13 net* 000t %
Gasoline 0.0 262.2 -262.2 -308.0 45.8 -14.9 0.3 1,799.6 -1,799.4 -2,039.0 239.6 -11.8
Naphtha 75.4 0.0 75.4 124.7 -49.3 -39.5 795.6 121.5 674.2 1,140.2 -466.0 -40.9
Jet kerosine 275.5 896.3 -620.8 -432.6 -188.1 43.5 1,596.0 4,011.4 -2,415.4 -1,403.8 -1,011.7 72.1
Gasoil 15.6 322.7 -307.1 -317.6 10.5 -3.3 173.9 1,707.7 -1,533.8 -1,379.3 -154.6 11.2
Fuel Oil 1,131.9 727.1 404.7 913.5 -508.7 -55.7 8,550.9 4,734.8 3,816.1 7,509.8 -3,693.7 -49.2
LPG 742.0 114.9 627.1 602.1 25.0 4.2 2,542.0 571.6 1,970.4 541.0 1,429.4 264.2
Asphalt 398.7 34.0 364.6 372.7 -8.0 -2.1 1,704.5 79.4 1,625.1 1,278.2 347.0 27.1
Petroleum coke 813.7 275.6 538.1 608.1 -70.0 -11.5 3,126.7 896.6 2,230.1 3,083.4 -853.4 -27.7
Lubricant 27.7 8.8 18.8 19.4 -0.5 -2.6 137.2 42.7 94.5 76.6 17.9 23.4
Base Oil 234.8 0.9 233.9 280.4 -46.5 -16.6 1,270.7 5.0 1,265.7 937.0 328.7 35.1
Wax 0.9 32.0 -31.1 1.4 -32.5 -2,246.0 4.7 149.4 -144.7 -215.4 70.7 -32.8
Other products 34.5 1.7 32.8 34.7 -1.9 -5.5 245.6 8.1 237.6 364.3 -126.8 -34.8
Total products** 3,750.6 2,676.3 1,074.3 1,898.7 -824.2 -43.4 20,148.0 14,127.7 6,020.2 9,893.0 -3,872.7 -39.1
Crude 26,082.4 0.0 26,082.4 27,875.0 -1,792.6 -6.4 128,680.7 252.9 128,427.8 115,167.3 13,260.5 11.5
Total petroleum 29,833.0 2,676.3 27,156.7 29,773.8 -2,616.8 -8.8 148,828.7 14,380.6 134,448.1 125,060.3 9,387.8 7.5
*minus figures indicate net exports **total products does not include wax in January 2014

Products exports, imports mn t Gasoil exports, imports mn t Gasoline exports, imports mn t


Product imports, exports mn t Gasoil imports, exports mn t Gasoline imports, exports mn t
4 0.6 0.6
Exports
2 Imports
0.4 Net exports/imports 0.4
0

-2 0.2 0.2
-4
Exports
0.0 0.0
-6 Exports
Imports Imports
Net exports/imports Net exports/imports
-8 -0.2 -0.2
Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr

Naphtha exports, imports mn t Fuel oil exports, imports mn t Jet kerosine exports, imports '000 t
Naphtha imports, exports mn t Fuel oil imports, exports mn t Jet-kerosine imports, exports mn t
0.2 2 1.0

1
0.0 0.5
0

-0.2 -1 0.0

-2
-0.4 Exports -0.5 Exports
Exports -3 Imports Imports
Imports Net exports/imports
Net exports/imports -1.0 Net exports/imports
-0.6 -4
Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr

2014 Argus Media Ltd www.argusmedia.com Page 15


Argus China Petroleum Products markets July 2014

Fuel oil fixtures 000t Product prices* (week ending)


Arrival Port Volume Specification Buyer 13 Jun 20 Jun 27 Jun 4 Jul
China Yn/t
3 Jun Qingdao, Shandong 94 Straight-run fuel oil Sinochem Hongrun HSFO (cracked) fob south China barges (STS) 4,275 4,275 4,259 4,260
$/t (premium to Mops HSFO 180)
4 Jun Longkou, Shandong 83 Straight-run fuel oil Tianhong New Energy M-100 (straight-run) c+f south China 109.50 109.70 110.90 110.50
M-100 (straight-run) c+f east China 108.50 108.70 109.90 109.50
5 Jun Qingdao, Shandong 140 Venezuela 380cst ChinaOil $/t
HSFO 180 c+f south China (month 1) 624.48 633.09 634.79 623.11
7 Jun Qingdao, Shandong 89 Straight-run fuel oil Qingdao Yijia HSFO 180 c+f south China (month 2) 621.58 631.34 633.69 623.41
HSFO 180 c+f south China (month 3) 619.28 629.64 632.24 622.21
9 Jun Zhoushan, Zhejiang 140 Venezuela 380cst ChinaOil South Korea/Japan $/t
HSFO 180 fob South Korea 624.45 633.70 634.85 623.20
13 Jun Qingdao, Shandong 14 Blended 380cst Chimbusco Naphtha c+f Japan 958.18 974.00 981.53 976.93
Singapore $/bl
15 Jun Qingdao, Shandong 70 Blended Sinopec Fuel Oil Gasoil 0.5pc 119.20 122.73 123.25 120.93
Gasoline 92R unleaded 118.42 122.19 123.50 124.70
16 Jun Longkou, Shandong 44 Russian M-100 Tianhong New Energy Naphtha 105.78 107.33 108.20 107.95
Jet-kerosine 119.22 123.29 123.50 121.00
Shandong Dongming
24 Jun Rizhao, Shandong 43 Russian M-100 HSFO 180 ($/t) 613.45 622.70 623.85 612.20
Petrochemical
$1 = Yn 6.1764 (8 Jul) *Average weekly prices
Shandong Dongming
24 Jun Longkou, Shandong 50 Straight-run fuel oil RUSSIA
Petrochemical Barabinsk

24 Jun Shanghai 40 South


500cst
Korean blended Chinese fuel oil prices, 10 Jun
Novosibirsk Lake
Baikal
Irkutsk Ulan Ude
30 Jun Rizhao, Shandong 95 Straight-run fuel oil Yuhuang Shengshi
M-100 export duty $261.10/t
Manzhouli
145 Malaysian diluted Zhejiang Ningbo Naushki
30 Jun Zhoushan, Zhejiang straight-run bitumen Youngor Ulan Bator
Harbin
Alashankou
Urumqi MONGOLIA
Jun 1,047
Erenhot Changchun
Shanshan
HSFO 180 fob S Korea $609.75/t
Early Jul Zhoushan, Zhejiang 80 Spore blended 380cst Sinopec Zhoushan Qinhuangdao
Baotou Beijing
Straight-run daf Alashankou $530.00/t Shijiazhuang Dalian
1 Jul Huangpu, Hainan 1.5 Spore blended Chimbusco Fuel oil export duty 15/t Luliang city
Linfen Qingdao
Rizhao port
4 Jul Longkou, Shandong 95 Straight-run fuel oil Sichuan Sedar Lanzhou Luoyang
Zhengzhou
C H I N A Xian Zhumadian
Shanghai
14 Jul Qingdao, Shandong 140 Venezuela 380cst ChinaOil Wanzhou
Wuhan
Lhasa
Chengdu
Chongqing
M-100 c+f E China (Mops) +$109.50/t
Mid-Jul Shandong 40 Russian M-100
Changhsha TA I WA N
Guiyang Quanzhou

Mid-Jul Shandong Rizhao 100 Straight-run fuel oil Yuhuang Shengshi M-100 c+f S China (Mops) +$110.50/t Xiamen
Kunming
Guangzhou
Liuzhou
Maoming Shenzhen
Late Jul Zhejiang Zhoushan 140 Venezuela 380cst ChinaOil Railway terminal
Principal rail routes
Jul 596.5 Other railways HSFO 180 fob Spore
Hainan $598.75/t

Gasoline exports

Gasoline exports and margins Singapore


Fuel oil:fuel oil differential
Singapore differentialto
to Rotterdam
Rotterdam $/t $/t
'000 b/d $/bl
25 40
160 Gasoline exports (LHS)
Gasoline domestic margin (RHS) 20
140 Gasoline export margin (RHS)
20
15
120
10 0
100
5
80
-20
60 0

40 -5 Rotterdam = 0
-40
20 -10

0 -15 -60
2011 2012 2013 2014 Jan 13 Apr Jul Oct Jan 14 Apr Jul

Diesel exports Product margins $/bl


Diesel exports and margins Singapore refining margins $/bl
'000 b/d $/bl
120 30 30
Diesel exports (LHS) Fuel oil Gasoil Gasoline Naphtha (cif Japan)
Diesel domestic margin (RHS)
100 Diesel export margin (RHS) 20
20

80
10 10
60
0 0
40

-10 -10
20
five-day rolling averages
0 -20 -20
2011 2012 2013 2014 Jan 13 Apr Jul Oct Jan 14 Apr Jul

2014 Argus Media Ltd www.argusmedia.com Page 16


Argus China Petroleum Crude markets July 2014

Crude prices* (week ending) $/bl


Mideast Gulf (Singapore close) 13 Jun 20 Jun 27 Jun 4 Jul
China raises ESPO Blend purchases
Dubai (month 1) 106.99 110.48 109.74 108.23
l Crude prices rose as violence in Iraq escalated and then
Dubai (month 2) 106.36 109.93 109.59 107.76
Dubai (month 3) 105.75 109.38 109.20 107.36 fell as Libya resumed exports. Atlantic basin benchmark
Oman (month 1) 106.79 109.89 110.15 108.79 North Sea Dated settled at $109.18/bl on 4 July, higher by
Murban (Abu Dhabi) 109.05 112.53 113.22 111.31
Qatar Marine 106.25 109.53 110.13 108.42
54/bl from 6 June but down from mid-Junes highs of $115/
Brent-Dubai EFS +4.66 +4.70 +4.46 +4.10 bl. Mideast Gulf benchmark crude Dubai rose by $2.48/bl
Asia-Pacific (Singapore close) between 6 June and 4 July.
Minas (Indonesia) 111.53 114.25 114.67 112.58
Duri (Indonesia) 109.53 112.25 112.67 110.58
Tapis (Malaysia) 114.34 117.71 116.36 113.59 l Chinese loadings of west African crude remained above
NW Shelf (Australia) 108.34 111.19 109.66 106.89
1mn b/d for June and July level with the 12-month aver-
West Africa (London close)
Cabinda Blend (Angola) 109.58 112.86 111.54 108.51 age. Weak margins have limited Chinese refinery runs,
Girassol (Angola) 110.34 113.71 112.46 109.70 although crude continues to go into storage. Military-linked
Hungo (Angola) 108.26 111.51 110.16 107.03
Zhenhua Oil resold 2mn bl of August-loading Iraqi Basrah
Bonny Light (Nigeria) 113.26 116.33 114.28 111.25
Russia/Mediterranean (London close) Light crude to European trading firm Vitol, at a discount to
Urals (Russia, cif northwest Europe) 107.54 110.89 109.58 107.43 the official selling price.
ESPO Blend (fob Kozmino) 110.34 113.03 113.14 111.72
Saharan Blend (Algeria) 111.38 114.31 112.39 109.29
North Sea Dated (Brent) 110.84 114.21 112.86 110.09 l China has raised purchases of Russian ESPO Blend
Ice Brent (BWave) month 1 110.42 113.87 113.84 111.62
crude, after a fall in the grades premium to Dubai crude (see
Nymex WTI (month 1) 105.17 106.73 105.90 104.62
*average weekly price ESPO Blend graph). Trading firms Unipec and Mercuria each
bought around 50,000 b/d of August-loading ESPO Blend.
Official selling prices $/bl Mercuria is expected to sell its purchases to ChemChina,
Dec 13 Jan 14 Feb Mar Apr May Jun
Middle East which lacks a licence to import its own crude. China bought
Abu Dhabi 70,000 b/d of July-loading ESPO Blend.
Murban 113.85 109.75 109.95 108.30 107.95 109.15 111.65
Oman
Oman MOG 106.70 105.97 107.88 104.04 105.04 104.36 104.99 l ChemChina bought an August-loading cargo of Australian
Asia-Pacific heavy sweet Pyrenees crude from producer BHP Billiton, as
Indonesia
Minas 108.06 110.03 108.71 112.46 111.05 108.17 111.61 the narrower Brent-Dubai EFS, or the premium of Brent to
Duri 105.81 102.80 104.02 104.76 103.44 104.46 106.86 Dubai, made Dated-linked Australian grades attractive (see
Malaysia
EFS graph). ChemChina has been buying more Australian
Tapis 118.21 114.05 114.87 113.97 112.13 114.21 115.05
Opec basket 107.67 104.71 105.38 104.15 104.27 105.44 105.44 grades recently.
Japan Crude Cocktail 112.10 113.47 110.92 110.17 109.47 109.11 na

Espo Blend differential


Formula pricing $/bl $/bl

Mar 14 Apr May Jun Jul Aug


ESPO Blend premium to Dubai swaps $/bl
Saudi Arabia fob Ras Tanura to Asia-Pacific: average Oman/Dubai 7
Arab Super Light +6.55 +5.95 +6.15 +6.45 +5.45 +4.45
Arab Light +1.75 +1.55 +1.85 +1.65 +2.25 +2.05
Arab Medium -0.20 -0.45 -0.15 -0.55 +0.35 +0.05 6
Arab Heavy -2.70 -3.20 -2.90 -3.55 -2.45 -2.80
Iran: fob Kharg Island: average Oman/Dubai
5
Iranian Light +1.96 +1.81 +2.11 +1.91 na na
Iranian Heavy -0.30 -0.51 -0.21 -0.61 na na
Iraq to Asia-Pacific: average Oman/Dubai 4
Basrah Light (Basrah oil terminal) -0.60 -0.70 -0.60 -0.95 -0.15 na
Kuwait: average Oman/Dubai
Kuwait -0.60 -0.90 -0.60 -1.00 -0.10 na 3
Jan 14 Feb Mar Apr May Jun Jul
Yemen: dated Brent
Masila +3.01 +2.82 +2.68 +1.62 +0.82 +0.82 Brent/Dubai EFS
Nigeria: dated Brent Brent-Dubai EFS $/bl
Bonny Light +1.95 +2.50 +2.55 + 2.70 +2.55 na
5.5

Freight rates (dirty) $/t


9 Jul 10 Jun
60,000t
Singapore>Qingdao (east China) 15.90 +0.26
Singapore>Huangpu (south China) 9.61 +0.16 4.5
80,000t
Mideast Gulf>Asia-Pacific 17.43 -1.24
Singapore>Huangpu (south China) 7.20 +0.12
Dubai = 0
260,000t
Mideast Gulf>Asia-Pacific 12.80 +3.36 3.5
Apr 13 May Jun Jul
West Africa>Asia-Pacific 20.71 +5.28

2014 Argus Media Ltd www.argusmedia.com Page 17


Argus China Petroleum Crude production July 2014

Chinese crude production


May May/Apr YTD YTD 14/13
Province/city Key companies 000t 000 b/d % of total 000 b/d % 000t 000 b/d % of total 000 b/d %
Northeast 4,799.5 1,114.7 27.03 -13.6 -1.21 23,414.9 1,116.5 27.20 -12.6 -1.12
Heilongjiang 3,460.8 803.8 19.49 -0.2 -0.02 16,758.0 799.1 19.47 4.3 0.54
Daqing (PetroChina) 3,460.8 803.8 19.49 -0.2 -0.02 16,757.5 799.0 19.47 12.1 1.54
Liaoning 861.2 200.0 4.85 2.4 1.21 4,163.0 198.5 4.84 0.8 0.38
PetroChina Liaohe 861.2 200.0 4.85 2.4 1.21 4,163.0 198.5 4.84 -0.1 -0.05
Jilin 477.5 110.9 2.69 -15.7 -12.40 2,493.9 118.9 2.90 -17.7 -12.96
PetroChina Jilin 404.3 93.9 2.28 -2.1 -2.19 2,091.8 99.7 2.43 -15.2 -13.24
Northwest 5,857.0 1,360.3 32.99 53.4 4.09 27,622.9 1,317.1 32.09 37.1 2.90
Xinjiang 2,294.3 532.9 12.92 4.8 0.91 11,044.2 526.6 12.83 9.6 1.86
PetroChina Xinjiang 1,028.4 238.9 5.79 4.5 1.92 4,860.3 231.7 5.65 4.8 2.11
PetroChina Tarim 475.8 110.5 2.68 -1.9 -1.69 2,374.4 113.2 2.76 2.2 2.00
PetroChina Tuha 164.3 38.2 0.93 1.9 5.24 761.2 36.3 0.88 4.8 15.06
Sinopec Northwest 625.8 145.4 3.52 0.3 0.21 3,048.3 145.3 3.54 -2.2 -1.47
Shaanxi 3,282.5 762.4 18.49 39.1 5.41 15,352.1 732.0 17.84 25.4 3.60
Changqing (PetroChina) 2,074.8 481.9 11.69 28.9 6.38 9,611.9 458.3 11.17 18.7 4.27
Yanchang (province-owned) 1,207.7 280.5 6.80 10.3 3.81 5,740.2 273.7 6.67 6.8 2.57
Qinghai 192.8 44.8 1.09 0.6 1.36 918.9 43.8 1.07 2.8 6.71
China Gas stock company (CNPC) 192.8 44.8 1.09 0.6 1.36 918.9 43.8 1.07 3.1 7.71
Gansu 87.4 20.3 0.49 10.2 100.99 307.7 14.7 0.36 0.0 -0.34
PetroChina Yumen 47.7 11.1 0.27 2.9 35.45 209.3 10.0 0.24 -0.1 -0.91
North* 3,059.9 710.7 17.23 22.3 3.24 14,731.0 702.4 17.11 -18.2 -2.53
Tianjin* 2,542.7 590.6 14.32 20.5 3.60 12,235.3 583.4 14.22 -20.3 -3.35
CNOOC Tianjin (Bohai) 2,145.7 498.4 12.08 21.0 4.40 10,287.5 490.5 11.95 -19.4 -3.80
PetroChina Dagang 397.0 92.2 2.24 -0.5 -0.54 1,947.8 92.9 2.26 -0.9 -0.96
Hebei 509.7 118.4 2.87 0.0 0.00 2,468.1 117.7 2.87 0.7 0.62
PetroChina Huabei 364.1 84.6 2.05 0.2 0.24 1,756.3 83.7 2.04 0.9 1.03
PetroChina Jidong 145.6 33.8 0.82 -0.2 -0.59 711.7 33.9 0.83 1.0 2.92
Ningxia Yanchi Changyan, Samsung Lantian 7.5 1.7 0.04 0.4 29.85 27.6 1.3 0.03 0.7 128.55
East 2,516.4 584.5 14.17 0.0 0.00 12,229.8 583.1 14.21 -7.7 -1.30
Shandong 2,334.7 542.3 13.15 0.1 0.02 11,353.4 541.4 13.19 -9.0 -1.64
Shengli (Sinopec) 2,334.7 542.3 13.15 0.1 0.02 11,353.4 541.4 13.19 1.4 0.26
Jiangsu 176.1 40.9 0.99 0.3 0.74 847.2 40.4 0.98 1.4 3.52
Sinopec Jiangsu 145.2 33.7 0.82 0.0 0.00 707.4 33.7 0.82 0.0 0.09
Sinopec East China 30.9 7.2 0.17 0.4 5.90 139.8 6.7 0.16 1.3 25.18
Shanghai Shanghai Oil and Gas 5.6 1.3 0.03 -0.4 -23.53 29.2 1.4 0.03 0.0 -1.74
Central 466.9 108.4 2.63 0.1 0.09 2,282.3 108.8 2.65 -1.9 -1.68
Henan 399.6 92.8 2.25 0.1 0.11 1,955.2 93.2 2.27 -0.8 -0.86
Sinopec Zhongyuan 195.6 45.4 1.10 0.0 0.00 961.9 45.9 1.12 -2.2 -4.66
Sinopec Henan 204.0 47.4 1.15 0.1 0.21 993.3 47.4 1.15 2.3 5.13
Hubei 67.3 15.6 0.38 0.0 0.00 327.1 15.6 0.38 -1.0 -6.31
Sinopec Jianghan 67.3 15.6 0.38 0.0 0.00 327.1 15.6 0.38 -0.8 -5.02
South** 1,039.1 241.3 5.85 -13.1 -5.15 5,705.8 272.1 6.63 11.6 4.44
Guangdong+ CNOOC Shenzhen, CNOOC Zhanjiang 963.6 223.8 5.43 -11.9 -5.05 5,305.8 253.0 6.16 -1.6 -0.61
Guangxi CNPC Guangxi Tiandong 51.7 12.0 0.29 -0.6 -4.76 274.8 13.1 0.32 12.7 3,264.33
Hainan Hainan Fushan 23.8 5.5 0.13 -0.6 -9.79 125.2 6.0 0.15 0.4 7.37
Southwest 16.9 3.9 0.10 -0.2 -4.84 84.3 4.0 0.10 -0.3 -7.66
Sichuan 16.9 3.9 0.10 -0.2 -4.84 84.3 4.0 0.10 -0.3 -7.66
PetroChina Sichuan 15.2 3.5 0.09 -0.2 -5.36 74.0 3.5 0.09 -0.4 -10.16
Total 17,755.7 4,123.9 100.00 49.0 1.20 86,071.0 4,104.0 100.00 8.0 0.20

CNPC 9,719.8 2,257.5 54.74 15.5 0.69 47,117.7 2,246.7 54.74 26.7 1.20
Sinopec 3,722.9 864.7 20.97 1.7 0.20 18,106.7 863.4 21.04 6.3 0.73
^CNOOC 3,109.3 722.2 17.51 9.2 1.29 15,593.3 743.5 18.12 -20.9 -2.73
Other 1,203.7 271.8 6.59 21.9 8.76 5,253.3 243.5 5.93 -4.0 -1.63
*north and Tianjin data include Bohai bay offshore production south includes South China Sea offshore production all Guangdong production is South China Sea offshore
^CNOOC production figures include the equity share of foreign partner firms

2014 Argus Media Ltd www.argusmedia.com Page 18


Argus China Petroleum Crude imports/exports July 2014

Chinas crude imports by origin and exports by destination, May


Imports by origin May Apr YTD YTD 14/13
000t 000 b/d 000 b/d % 000t 000 b/d 000 b/d %
Middle East 13,248.9 3,127.7 -552.4 -15.0 65,894.5 3,193.5 261.6 8.9
Saudi Arabia 3,728.7 878.0 -56.7 -6.1 20,254.3 979.2 -137.2 -12.3
Iran 3,218.5 755.8 -41.8 -5.2 13,380.2 645.1 214.3 49.8
Oman 2,169.4 513.7 -374.4 -42.2 11,788.5 573.0 114.1 24.9
Yemen 77.2 18.5 -35.6 -65.9 530.9 26.1 -10.8 -29.3
UAE 951.2 230.7 112.4 95.0 4,013.2 199.9 -28.5 -12.5
Kuwait 774.0 181.5 47.7 35.6 3,566.3 171.7 -4.5 -2.6
Iraq 2,329.9 549.4 -169.8 -23.6 12,223.5 591.7 114.0 23.9
Qatar -34.3 -100.0 137.6 6.8 0.3 4.6
Africa 5,959.3 1,402.2 -188.2 -11.8 29,714.8 1,433.6 168.3 13.3
Angola 3,388.0 792.4 -191.6 -19.5 18,123.0 870.1 59.9 7.4
Sudan 140.5 32.9 -9.3 -22.0 880.9 42.4 15.0 54.8
Congo (Brazzaville) 534.9 126.1 31.8 33.7 2,565.8 124.2 -33.0 -21.0
Congo (DRC) 135.4 31.9 31.9 na 506.0 24.5 0.6 2.5
Equatorial Guinea 259.6 60.9 -38.8 -38.9 1,476.5 71.1 25.5 55.9
Nigeria 257.9 61.6 -3.9 -5.9 1,088.4 53.4 34.4 180.6
Algeria 267.9 67.9 1.3 2.0 764.5 39.8 -0.5 -1.2
Chad 45.5 9.9 9.9 na 143.1 6.4 0.2 3.2
Egypt 76.8 17.7 -14.0 -44.2 462.4 21.8 -21.6 -49.7
Gabon 215.1 51.1 9.8 23.7 641.6 31.3 25.9 484.1
Cameroon 133.1 30.7 30.7 na 133.1 6.3 6.3 na
Ghana -31.9 -100.1 246.6 12.3 5.8 88.5
South Sudan 504.7 119.0 -14.2 -10.7 2,682.9 129.9 129.9 na
FSU/Europe 3,586.7 863.2 126.4 17.2 16,798.9 829.5 97.8 13.4
Russia 2,947.5 708.4 88.8 14.3 12,928.7 636.2 156.7 32.7
Kazakhstan 368.3 90.1 -27.1 -23.1 2,964.1 148.8 -103.5 -41.0
UK 270.9 64.8 64.8 na 684.1 33.6 33.6 na
Azerbaijan 222.0 10.9 10.9 na
Americas 2,458.7 564.6 -116.1 -17.1 13,479.1 640.8 72.2 12.7
Venezuela 1,822.0 412.6 126.5 44.2 6,852.4 318.6 1.7 0.5
Brazil -98.1 -100.0 2,232.5 107.2 1.9 1.8
Argentina 144.1 6.9 6.9 na
Ecuador -25.9 -100.0 226.4 10.3 -5.1 -33.2
Bolivia -8.2 -100.6 56.4 2.7 2.7 na
Colombia 563.6 135.6 -94.4 -41.0 3,688.3 182.2 84.4 86.3
Canada -11.7 -100.4
Mexico 73.2 16.4 -16.0 -49.4 278.9 12.9 -5.8 -31.1
Asia-Pacific 551.1 135.8 21.6 18.9 2,515.7 127.2 0.6 0.5
Indonesia 139.4 6.8 -5.8 -46.2
Vietnam 267.2 65.4 48.3 282.6 558.2 28.1 22.0 363.6
Brunei 81.9 4.1 0.1 2.6
Malaysia -10.5 -100.1 181.8 9.2 -9.8 -51.7
Australia 218.6 55.0 -11.1 -16.8 1,203.6 62.2 1.8 3.0
Mongolia 65.3 15.4 -5.2 -25.3 350.8 17.0 6.6 63.7
Total imports 25,804.7 6,093.6 -708.6 -10.4 128,403.0 6,224.6 600.5 10.7
of which:
Opec* 16,738.0 3,930.0 -236.1 -5.7 80,769.1 3,893.4 184.9 5.0
Opec* % 64.5 (May) 61.2 (Apr) 62.5 (YTD 14) 65.9 (YTD 13)
Middle East % 51.3 (May) 54.1 (Apr) 51.3 (YTD 14) 52.1 (YTD 13)
Africa % 23 (May) 23.4 (Apr) 23 (YTD 14) 22.5 (YTD 13)
FSU % 13.1 (May) 10.8 (Apr) 13.3 (YTD 14) 13 (YTD 13)
Exports by destination 000t 000 b/d 000 b/d % 000t 000 b/d 000 b/d %
South Korea 93.6 4.4 4.4 na
Japan 78.4 3.7 -12.9 -78.0
Total exports 171.9 8.1 -31.2 -79.4

Net crude imports 25,804.7 6,093.6 -708.6 -10.4 128,231.1 6,216.5 631.7 11.3
Crude production 17,755.7 4,123.9 49.0 1.2 86,071.0 4,104.0 8.0 0.2
Apparent crude demand 43,560.4 10,217.5 -659.6 -6.1 214,302.1 10,320.5 639.7 6.6
Refinery runs 40,335.0 9,500.0 -102.0 -1.1 200,099.2 9,673.7 95.0 1.0
Unaccounted for crude 3,225.4 717.5 -557.6 -43.7 14,202.9 646.8 544.7 533.5
Crude import dependency % 59.6 (May) 62.5 (Apr) 60.2 (YTD 14) 57.7 (YTD 13)
Net products imports 1,105.4 160.0 -90.0 -36.0 6,390.2 257.9 -149.6 -36.7
Net petroleum imports 26,910.1 6,253.6 -798.6 -11.3 134,621.3 6,474.4 482.1 8.0
Apparent petroleum demand 44,665.8 10,377.5 -749.6 -6.7 220,692.3 10,578.4 490.1 4.9
Petroleum import dependency % 60.3 (May) 63.4 (Apr) 61.2 (YTD 14) 59.4 (YTD 13)
*includes Ecuador from Dec 07 and Angola from Jan 07. Back data adjusted to include Ecuador and Angola
Apparent crude demand minus refinery runs. This includes storage gains and heavy crude run in specialist asphalt factories which are not officially regarded as refineries

2014 Argus Media Ltd www.argusmedia.com Page 19


Argus China Petroleum Crude imports in detail July 2014

Chinese crude imports and exports in detail, May


Imports by destination (city,
000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Transport
province)^
Northeast 1,131.09 4,790.53 1,131.09 3,649.07 761.73 104.07
Dalian, Liaoning 780.36 3,331.14 780.36 2,480.29 744.58 102.53
Dalian (PetroChina) Angola 308.34 72.11 259.54 841.76 116.10
Dalian (PetroChina) Congo Jinzhou, Liaoning 148.46 34.72 112.83 760.00 104.83 Sea
Dalian (PetroChina) Iran Dalian, Liaoning 357.80 84.03 259.05 724.00 99.45 Sea
Dalian (PetroChina) Other, Liaoning 108.31 25.44 84.05 776.00 106.59 Sea
Dalian (PetroChina) Iraq Dalian, Liaoning 139.12 32.81 105.75 760.10 103.98 Sea
Dalian (PetroChina) Yingkou, Liaoning 144.00 33.96 106.69 740.90 101.35 Sea
Dalian (PetroChina) Saudi Arabia Dalian, Liaoning 202.74 47.74 162.66 802.29 109.90 Sea
Dalian (PetroChina) Yingkou, Liaoning 267.81 63.06 218.61 816.30 111.82 Sea
Dalian (PetroChina) UAE Dalian, Liaoning 266.13 64.56 217.73 818.14 108.80 Sea
Dalian (PetroChina) Yingkou, Liaoning 130.48 31.65 110.28 845.18 112.39 Sea
Dalian (PetroChina) Venezuela Yingkou, Liaoning 304.61 68.98 191.14 627.48 89.39 Sea
Dalian (PetroChina) Qinhuangdao, Hebei 462.02 104.63 293.37 634.98 90.45 Sea
Dalian (PetroChina) Colombia Dalian, Liaoning 86.86 20.90 67.33 775.14 103.91 Sea
Dalian (PetroChina) Nigeria Dalian, Liaoning 126.76 30.30 107.07 844.69 113.99 Sea
Dalian (PetroChina) Aruba Other, Liaoning 277.72 65.49 184.21 663.30 90.74 Sea
Harbin, Heilongjiang 304.91 1,268.74 304.91 1,006.14 793.02 106.45
Daqing (two refs), alian (PC) Russia Daqing, Heilongjiang 1,268.74 304.91 1,006.14 793.02 106.45 Sea
Shenyang, Liaoning 45.82 190.65 45.82 162.64 853.06 114.50
Jinzhou (PetroChina) Russia Huludao, Liaoning 95.83 23.03 81.57 851.14 114.25 Sea
Jinzhou (PetroChina) Jinzhou, Liaoning 94.82 22.79 81.07 855.00 114.77 Sea
Northwest 228.88 945.97 228.88 715.66 756.54 100.86
Urumqi, Xinjiang 228.88 945.97 228.88 715.66 756.54 100.86
Urumqi (PetroChina) Kazakhstan Xinjiang Uygur, Urumqi 368.28 90.05 277.43 753.30 99.38 Other
Urumqi (PetroChina) Russia Xinjiang Uygur, Urumqi 577.68 138.83 438.23 758.60 101.83 Other
North 493.94 2,092.45 493.94 1,578.32 754.29 103.08
Shijiazhuang, Hebei 210.79 888.20 210.79 649.09 730.80 99.33
Shijiazhuang (Sinopec) Angola 38.04 8.90 29.59 777.77 107.28
Shijiazhuang (Sinopec) Iraq Beijing 64.80 15.28 47.95 739.87 101.21 Sea
Shijiazhuang (Sinopec) Tianjin 79.20 18.68 58.56 739.38 101.15 Sea
Shijiazhuang (Sinopec) Oman Shijiazhuang, Hebei 27.73 6.57 21.38 771.07 105.05 Sea
Shijiazhuang (Sinopec) Cangzhou, Hebei 41.59 9.85 32.07 771.05 105.05 Sea
Shijiazhuang (Sinopec) Beijing 76.81 18.19 59.21 770.91 105.03 Sea
Shijiazhuang (Sinopec) Saudi Arabia Cangzhou, Hebei 21.10 4.97 16.28 771.58 105.70 Sea
Shijiazhuang (Sinopec) Beijing 129.75 30.55 99.33 765.54 104.87 Sea
Shijiazhuang (Sinopec) Tianjin 126.54 29.80 92.77 733.07 100.42 Sea
Shijiazhuang (Sinopec) Colombia Beijing 42.38 10.20 28.73 677.87 90.87 Sea
Shijiazhuang (Sinopec) Tianjin 240.25 57.82 163.23 679.43 91.08 Sea
Tianjin 267.74 1,138.93 267.74 878.99 771.77 105.90
Tianjin (Sinopec) Angola 247.36 57.85 197.02 796.51 109.86
Tianjin (Sinopec) Kuwait Tianjin 130.97 30.72 99.65 760.86 104.66 Sea
Tianjin (Sinopec) Tianjin EDZ 130.97 30.72 100.00 763.52 105.02 Sea
Tianjin (Sinopec) Russia Beijing 99.78 23.98 81.34 815.20 109.42 Sea
Tianjin (Sinopec) Tianjin 88.63 21.30 77.22 871.21 116.94 Sea
Tianjin (Sinopec) Saudi Arabia Tianjin 129.09 30.40 95.79 742.09 101.66 Sea
Tianjin (Sinopec) Chaoyang, Beijing 126.69 29.83 101.67 802.46 109.93 Sea
Tianjin (Sinopec) Venezuela Qinhuangdao, Hebei 117.72 26.66 75.84 644.23 91.77 Sea
Tianjin (Sinopec) Colombia Beijing 67.71 16.29 50.46 745.23 99.90 Sea
Hohhot, Inner Mongolia 13.71 58.15 13.71 45.92 789.82 108.05
Hohhot (PetroChina) Mongolia Hohhot, Inner Mongolia 6.23 1.47 4.98 799.97 109.44 Other
Hohhot (PetroChina) Daqing, Heilongjiang 47.24 11.14 37.39 791.48 108.27 Sea
Hohhot (PetroChina) Cangzhou, Hebei 4.68 1.10 3.55 759.56 103.90 Sea
Manzhouli, Inner Mongolia 1.69 7.18 1.69 4.31 600.03 82.08
Mongolia Daqing, Heilongjiang 7.18 1.69 4.31 600.03 82.08 Sea
East 2,528.93 10,744.79 2,528.93 8,176.94 761.01 104.30
Hangzhou, Zhejiang 479.58 2,039.88 479.58 1,553.02 761.33 104.46
Yangtze, Jinling, Zhenhai, Jinshan,
Angola 135.27 31.64 101.73 752.08 103.74
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Iran Nanjing, Jiangsu 259.81 61.01 196.16 755.00 103.71 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Pudong, Shanghai 147.63 34.67 110.35 747.47 102.67 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Jinshan, Shanghai 133.28 31.30 102.53 769.34 105.68 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Iraq Nanjing, Jiangsu 218.88 51.61 164.20 750.19 102.63 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Pudong, Shanghai 139.41 32.87 107.33 769.87 105.32 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Jinshan, Shanghai 178.26 42.04 144.06 808.15 110.56 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Oman Nanjing, Jiangsu 173.03 40.97 131.97 762.73 103.91 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Jinshan, Shanghai 140.34 33.23 108.03 769.76 104.87 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Saudi Arabia Nanjing, Jiangsu 157.22 37.02 116.55 741.32 101.55 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Pudong, Shanghai 41.49 9.77 31.99 771.03 105.62 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Jinshan, Shanghai 66.56 15.67 55.38 832.04 113.98 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Sudan Nanjing, Jiangsu 59.06 13.85 48.03 813.24 111.86 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
Chad Zhoushan, Zhejiang 45.54 9.94 32.54 714.59 105.55 Sea
Gaoqiao (Sinopec), Various**
Yangtze, Jinling, Zhenhai, Jinshan,
South Sudan Nanjing, Jiangsu 144.13 33.99 102.18 708.92 96.98 Sea
Gaoqiao (Sinopec), Various**
Ningbo, Zhejiang 820.96 3,508.94 820.96 2,629.20 749.29 103.31
Zhenhai (Sinopec), Various** Angola 250.80 58.66 208.78 832.44 114.82
Zhenhai (Sinopec), Various** Iran Nanjing, Jiangsu 65.88 15.47 50.49 766.47 105.28 Sea
Zhenhai (Sinopec), Various** Zhejiang, Zhejiang 394.54 92.65 308.34 781.51 107.35 Sea
Zhenhai (Sinopec), Various** Jinshan, Shanghai 72.83 17.10 55.82 766.47 105.28 Sea
Zhenhai (Sinopec), Various** Iraq Nanjing, Jiangsu 364.76 86.01 270.94 742.80 101.61 Sea
Zhenhai (Sinopec), Various** Pudong, Shanghai 50.92 12.01 38.65 759.08 103.84 Sea

2014 Argus Media Ltd www.argusmedia.com Page 20


Argus China Petroleum Crude imports in detail July 2014

Chinese crude imports and exports in detail, May


Imports by destination (city,
000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Transport
province)^
Zhenhai (Sinopec), various** Zhejiang, Zhejiang 270.58 63.80 201.39 744.28 101.82 Sea
Zhenhai (Sinopec), various** Jinshan, Shanghai 130.00 30.66 107.92 830.15 113.56 Sea
Zhenhai (Sinopec), various** Kuwait Zhejiang, Zhejiang 131.17 30.76 100.10 763.14 104.97 Sea
Zhenhai (Sinopec), various** Jinshan, Shanghai 69.86 16.38 53.57 766.80 105.48 Sea
Zhenhai (Sinopec), various** Oman Zhejiang, Zhejiang 139.12 32.94 106.21 763.44 104.01 Sea
Zhenhai (Sinopec), various** Russia Nanjing, Jiangsu 40.00 9.61 35.11 877.68 117.81 Sea
Zhenhai (Sinopec), various** other, Shanghai 48.77 11.72 42.80 877.67 117.81 Sea
Zhenhai (Sinopec), various** Saudi Arabia Nanjing, Jiangsu 164.45 38.73 120.05 730.00 100.00 Sea
Zhenhai (Sinopec), various** Zhejiang, Zhejiang 124.94 29.42 99.92 799.75 109.56 Sea
Zhenhai (Sinopec), various** Jinshan, Shanghai 168.64 39.71 131.14 777.64 106.53 Sea
Zhenhai (Sinopec), various** Venezuela Zhejiang, Zhejiang 665.66 150.74 418.29 628.39 89.51 Sea
Zhenhai (Sinopec), various** Colombia Jinshan, Shanghai 52.04 12.52 36.43 700.03 93.84 Sea
Zhenhai (Sinopec), various** Sudan Zhejiang, Zhejiang 81.41 19.09 66.51 817.00 112.38 Sea
Zhenhai (Sinopec), various** South Sudan Zhejiang, Zhejiang 87.13 20.55 61.86 709.93 97.12 Sea
Zhenhai (Sinopec), various** UK Zhejiang, Zhejiang 135.44 32.42 114.87 848.16 114.31 Sea
Qingdao, Shandong 1,228.39 5,195.97 1,228.39 3,994.72 768.81 104.90
Various** Angola 1,090.85 255.12 861.01 789.31 108.87
Various** Australia Dongying, Shandong 81.90 20.61 64.93 792.78 101.64 Sea
Various** Longkou, Shandong 81.64 20.54 54.93 672.80 86.26 Sea
Various** Yantai, Shandong 55.07 13.86 42.45 770.95 98.84 Sea
Various** Congo Rizhao, Shandong 259.92 60.79 198.90 765.26 105.55 Sea
Various** Iran Qingdao, Shandong 260.42 61.16 197.70 759.16 104.28 Sea
Various** Rizhao, Shandong 263.63 61.91 198.42 752.65 103.39 Sea
Various** Iraq Qingdao, Shandong 549.99 129.69 406.00 738.20 100.99 Sea
Various** Kuwait Qingdao, Shandong 183.24 42.97 139.80 762.93 104.94 Sea
Various** Oman Rizhao, Shandong 324.55 76.85 252.95 779.40 106.19 Sea
Various** Weifang, Shandong 69.43 16.44 53.84 775.47 105.65 Sea
Various** Russia Qingdao, Shandong 101.04 24.28 82.97 821.24 110.23 Sea
Various** Dongying, Shandong 139.78 33.59 111.99 801.20 107.54 Sea
Various** Rizhao, Shandong 99.77 23.98 81.94 821.30 110.24 Sea
Various** Saudi Arabia Qingdao, Shandong 631.41 148.69 470.11 744.54 101.99 Sea
Various** UAE Rizhao, Shandong 264.18 64.09 207.78 786.50 104.59 Sea
Various** Colombia Qingdao, Shandong 74.38 17.90 50.53 679.30 91.06 Sea
Various** Eq. Guinea Rizhao, Shandong 259.57 60.87 210.88 812.43 111.75 Sea
Various** Gabon Rizhao, Shandong 129.37 30.71 100.44 776.41 105.49 Sea
Various** Cameroon Rizhao, Shandong 133.11 30.70 106.16 797.52 111.54 Sea
Various** South Sudan Qingdao, Shandong 142.75 33.66 100.98 707.43 96.78 Sea
South 1,774.91 7,508.68 1,774.91 5,930.32 789.80 107.78
Xiamen, Fujian 558.50 2,359.41 558.50 1,878.70 796.26 108.51
Fujian (Sinopec) Congo Quanzhou, Fujian 126.52 29.59 98.38 777.59 107.25 Sea
Fujian (Sinopec) Iran Zhangzhou, Fujian 380.53 89.36 326.15 857.09 117.73 Sea
Fujian (Sinopec) Oman Quanzhou, Fujian 554.36 131.26 426.21 768.82 104.74 Sea
Fujian (Sinopec) Russia Quanzhou, Fujian 199.55 47.96 164.22 822.95 110.46 Sea
Fujian (Sinopec) Saudi Arabia Quanzhou, Fujian 838.99 197.57 646.27 770.29 105.52 Sea
Fujian (Sinopec) Nigeria Quanzhou, Fujian 131.10 31.34 108.39 826.75 111.57 Sea
Fujian (Sinopec) Vietnam Quanzhou, Fujian 128.34 31.42 109.09 849.97 111.99 Sea
Nanning, Guangxi 237.98 991.28 237.98 828.10 835.38 112.25
Beihai (Sinopec) Angola 400.06 93.56 325.85 814.51 112.35
Beihai (Sinopec) Congo Qinzhou, Guangxi 135.41 31.67 110.65 817.18 112.71 Sea
Beihai (Sinopec) Oman Guangxi Qinzhou Port, Guangxi 94.83 22.45 73.65 776.66 105.81 Sea
Beihai (Sinopec) Russia Qinzhou, Guangxi 93.12 22.38 82.10 881.70 118.35 Sea
Beihai (Sinopec) Algeria Qinzhou, Guangxi 267.86 67.92 235.84 880.46 112.02 Sea
Haikou, Hainan 144.21 606.75 144.21 518.38 854.35 115.96
Angola 138.00 32.27 110.52 800.90 110.47
Oman Yangpu EDZ, Hainan 263.74 62.45 233.04 883.59 120.38 Sea
UAE Yangpu EDZ, Hainan 127.85 31.02 109.76 858.49 114.16 Sea
Yemen Yangpu EDZ, Hainan 77.17 18.47 65.06 843.13 113.63 Sea
Shenzhen, Guangdong 162.93 695.58 162.93 540.00 776.34 106.92
Beihai, Guangzhou, Maoming,
Angola 249.85 58.43 197.33 789.81 108.94
Zhanjiang Dongxing (Sinopec)
Beihai, Guangzhou, Maoming,
Iran Guangzhou, Guangdong 199.50 46.85 155.45 779.21 107.03 Sea
Zhanjiang Dongxing (Sinopec)
Beihai, Guangzhou, Maoming,
Oman Guangzhou, Guangdong 131.92 31.24 102.09 773.84 105.43 Sea
Zhanjiang Dongxing (Sinopec)
Beihai, Guangzhou, Maoming,
UAE Guangzhou, Guangdong 41.13 9.98 34.54 839.81 111.68 Sea
Zhanjiang Dongxing (Sinopec)
Beihai, Guangzhou, Maoming,
Mexico Guangzhou, Guangdong 73.18 16.43 50.59 691.35 99.33 Sea
Zhanjiang Dongxing (Sinopec)
Zhanjiang, Guangdong 609.96 2,594.65 609.96 1,968.04 758.50 104.08
Zhanjiang Dongxing (Sinopec) Angola 529.44 123.82 399.92 755.36 104.19
Zhanjiang Dongxing (Sinopec) Iran Beihai, Guangxi 251.85 59.14 193.44 768.11 105.51 Sea
Zhanjiang Dongxing (Sinopec) Maoming, Guangdong 322.48 75.73 242.53 752.08 103.31 Sea
Zhanjiang Dongxing (Sinopec) Oman Maoming, Guangdong 131.92 31.24 99.57 754.73 102.82 Sea
Zhanjiang Dongxing (Sinopec) Saudi ArabiaMaoming, Guangdong 398.05 93.74 310.98 781.25 107.02 Sea
Zhanjiang Dongxing (Sinopec) UAE Zhanjiang, Guangdong 121.46 29.46 102.38 842.91 112.09 Sea
Zhanjiang Dongxing (Sinopec) Venezuela Zhanjiang, Guangdong 271.94 61.58 172.32 633.67 90.27 Sea
Zhanjiang Dongxing (Sinopec) Vietnam Zhanjiang, Guangdong 71.71 17.56 62.70 874.32 115.19 Sea
Zhanjiang Dongxing (Sinopec) Maoming, Guangdong 67.10 16.43 58.30 868.92 114.48 Sea
Zhanjiang Dongxing (Sinopec) Egypt Maoming, Guangdong 76.77 17.66 50.26 654.73 91.83 Sea
Zhanjiang Dongxing (Sinopec) Gabon Zhanjiang, Guangdong 47.18 11.20 38.53 816.62 110.95 Sea
Zhanjiang Dongxing (Sinopec) Maoming, Guangdong 38.60 9.16 31.45 814.89 110.72 Sea
Zhanjiang Dongxing (Sinopec) South Sudan Maoming, Guangdong 130.71 30.82 91.40 699.23 95.65 Sea
Zhanjiang Dongxing (Sinopec) UK Maoming, Guangdong 135.44 32.42 114.26 843.60 113.69 Sea
Huangpu, Guangdong 61.34 261.01 61.34 197.09 755.10 103.65
Kuwait Guangzhou, Guangdong 127.82 29.98 95.87 750.00 103.16 Sea
Saudi Arabia Guangzhou, Guangdong 133.19 31.36 101.22 760.00 104.11 Sea
Total imports 6,157.75 26,082.42 6,157.75 20,050.29 768.73 105.04
Exports by origin (city,
000 b/d Likely crude type Destination Departure customs 000t 000 b/d $mn $/t $/bl Transport
province)^
0 0 0
^Destination (for imports) and origin (exports) in the customs entry usually refers to the shipments final destination, but occasionally indicates an intermediate point.
Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid-Yangtze refineries.
Pearl river delta destinations.
* Crude imported via Qingdao, Shandong, also goes to Sinopecs mid-Yangtze refineries and its plants in north China such as Shijiazhuang by pipeline.

2014 Argus Media Ltd www.argusmedia.com Page 21


Argus China Petroleum Crude imports in detail July 2014

Refinery throughputs by region 000 b/d Yangtze crude imports


Yangtze imports
mn b/d %
RUSSIA 3.5 120

Manzhouli Northeast 3.0


Mar 1,693 2.5 100
K A Z A K H S TA N Apr 1,491
May 1,360 2.0
80
1.5
MONGOLIA 1.0
Alashankou Daqing 60
0.5
Urumqi Fujian 0.0 40
Dushanzi Erenhot Apr 12 Jul Oct Jan 13 Apr Jul Oct
Jinzhou
Saudi Arabia Iran other Mideast
NORTH
North Angola other Africa Russia
KOREA
Northwest Mar 688 Beijing Other Imports as % runs (RH scale)
Mar 868 Apr 581 Tianjin Dalian
Apr 860 SOUTH
May 678 KOREA
May 876
Lanzhou Zibo Qingdao Southeast coast imports
Yangtze delta Southeast coast imports
C H I N A Mar 1,283
Nanjing mn b/d %
Apr 1,427 Shanghai 2.0 140
Central May 1,266
Mar 656 130
Apr 685 1.5
May 749 East 120
Mar 1,848
Apr 2,054 Ningbo 1.0 110
May 1,838
100
0.5
Refinery Quanzhou 90
South coast Quanzhou
Xiamen
Import terminal Mar 1,247
B A N G L(sea
ADE SH Xiamen 0.0 80
port) Apr 1,272 Maoming Apr 12 Jul Oct Jan 13 Apr Jul Oct
Import terminal May 1,328 Guangzhou T A I W A N Saudi Arabia Oman Iran
(rail) other Mideast Angola other Africa
Hong Kong
L America Other Imports as %
M YA N M A R VIETNAM Zhanjiang runs (RH scale)
LAOS
Northeast imports
Northeast imports
THAILAND mn b/d %
2.5 120

2.0 100
Chinese crude imports by origin mn b/d
1.5 80

7 1.0 60

6 0.5 40

5 0.0 20
Apr 12 Jul Oct Jan 13 Apr Jul Oct
Russia (rail) Angola
4
other Africa Russia (sea)
3 Other Imports as % of
runs (RH scale)
2

1 Wepec imports
Wepec imports
'000 b/d %
0
2008 2009 2010 2011 2012 2013 2014 400 300
350
Middle East Africa 300
FSU/Europe Americas 200
250
Asia-Pacific Net crude imports 200
150
100
100
50

Chinese crude imports by origin mn b/d 0


Apr 12 Jul Oct Jan 13 Apr Jul Oct
0

Saudi Arabia Iran Kuwait


Jun 13 Jul Aug Sep Oct Nov Dec Jan 14 Feb Mar Apr May
UAE Sudan Other

Oman 0.439 0.781 0.340 0.516 0.523 0.558 0.689 0.664 0.406 0.387 0.888 0.514 Imports as % of runs (RH scale)

Iran 0.384 0.396 0.435 0.474 0.249 0.537 0.506 0.563 0.551 0.554 0.798 0.756

Saudi Arabia 0.949 1.240 0.891 1.185 1.081 1.031 0.980 1.199 1.121 0.775 0.935 0.878 Overland
Overlandimports
imports

Other Middle East 0.709 0.930 0.999 1.057 0.702 0.949 1.070 1.007 0.727 1.184 1.060 0.980 '000 b/d %
800 13
Congo (Brazzaville) 0.127 0.155 0.121 0.156 0.089 0.107 0.161 0.147 0.163 0.093 0.094 0.126 12
600
Sudan 0.040 0.085 0.009 0.115 0.087 0.083 0.032 0.079 0.039 0.018 0.042 0.033 11
400 10
Angola 0.785 0.803 0.716 0.961 0.753 0.521 0.942 0.901 0.963 0.724 0.984 0.792
9
200
Other Africa 0.230 0.277 0.389 0.302 0.311 0.336 0.359 0.441 0.402 0.223 0.470 0.451 8

FSU/Europe 0.914 0.751 0.712 0.685 0.716 0.887 0.743 0.777 0.985 0.807 0.737 0.863 0 7
Jul 12 Oct Jan 13 Apr Jul Oct Jan 14
Russia rail (Manzhouli) Russia rail (Erenhot)
Americas 0.686 0.505 0.316 0.620 0.227 0.661 0.742 0.740 0.565 0.642 0.673 0.565 Russia pipeline Kazakh pipeline
Overland % of total
Asia-Pacific 0.136 0.232 0.144 0.194 0.096 0.077 0.069 0.130 0.102 0.151 0.114 0.136 (RH scale)

Net crude imports 5.389 6.116 5.024 6.249 4.809 5.723 6.303 6.631 5.986 5.557 6.802 6.159

2014 Argus Media Ltd www.argusmedia.com Page 22


Argus China Petroleum Refinery throughputs July 2014

Refinery throughputs, Jul (plan)


Province Operator Capacity Crude sources Shutdowns Jul (plan) Jun
mn t/yr 000 b/d 000 b/d 000t 000 b/d % utilisation 000 b/d %
Northeast* 102.7 2,050 Local, some Russian rail 60 7,200 1,694 83 +211 +14
Dalian (PetroChina) Liaoning PetroChina 20.5 410 Daqing, Russian rail, west Africa 0 1,600 377 92 +207 +122
Daqing petrochemical Heilongjiang PetroChina 9.5 190 Local (Daqing), some Russian rail 0 550 130 68 -4 -3
Daqing refining & chemical Heilongjiang PetroChina 5.5 110 Local (Daqing), some Russian rail 0 550 130 118 +11 +9
Fushun Liaoning PetroChina 11.5 230 Local (Daqing 85%, Fushun 15%) 0 700 165 72 -5 -3
Harbin Heilongjiang PetroChina 5.0 100 Daqing, Russian rail 20% 0 300 71 71 -2 -3
Jilin petrochemical Jilin PetroChina 10.0 200 Local (Daqing, Jilin), Russian rail 20% 0 700 165 83 +4 +3
Jinxi Liaoning PetroChina 6.5 130 Domestic, Imports 10% 0 550 130 100 +20 +18
Jinzhou Liaoning PetroChina 9.0 180 Domestic, Imports 30% (Chad, Russia etc) 60 350 82 46 -32 -28
Liaohe, Panjin Liaoning PetroChina 5.2 100 Local (Liaohe) 0 400 91 91 -3 -3
Liaoyang Liaoning PetroChina 10.0 200 Local (Liaohe, Daqing) Russian rail 20% 0 800 188 94 -4 -2
Wepec Dalian Liaoning Wepec 10.0 200 Middle East sour imports only 0 700 165 83 +19 +13
Northwest* 60.8 1,224 Xinjiang, local, Kazakh rail/pipeline 320 2,830 671 55 -204 -23
Changqing, Xianyang Shaanxi PetroChina 5.0 100 Local (Changqing) 0 400 94 94 -4 -4
Dushanzi Xinjiang PetroChina 15.8 320 Xinjiang, Kazakh (40pc) 0 780 186 58 +1 +1
Karamay Xinjiang PetroChina 5.0 100 Xinjiang 0 300 71 71 -3 -4
Lanzhou Gansu PetroChina 15.9 320 Xinjiang, local 320 0 0 - -196 -100
Tahe Xinjiang Sinopec 4.7 94 Local (Tahe) 0 300 70 75 -3 -4
Urumqi Xinjiang PetroChina 9.4 190 Xinjiang, Kazakh 0 700 167 88 +4 +3
Xian Shaanxi Sinopec 2.5 50 Local (Yanchang) 0 130 31 62 -1 -3
Yumen Gansu PetroChina 2.5 50 Xinjiang, local 0 220 52 104 -2 -4
North* 47.5 939 50:50 seaborne imports:domestic 19 3,080 717 76 +51 +8
Beijing Yanshan Beijing Sinopec 13.5 270 Daqing, some imports 0 950 224 83 +5 +2
Cangzhou Hebei Sinopec 3.6 71 Domestic 50%, Imports (Oman etc) 50% 0 300 70 99 +0 +0
Dagang Tianjin PetroChina 5.1 98 Local (Dagang) 0 400 91 93 -3 -3
Huabei, Renqiu Hebei PetroChina 5.1 100 Local (Huabei) 0 380 88 88 -3 -3
Shijiazhuang Hebei Sinopec 5.0 100 Local (Huabei), Russian rail 30% 19 250 58 58 +58 na
Tianjin Tianjin Sinopec 15.2 300 Local (Dagang) 50%, Imports (sweet) 50% 0 800 186 62 -6 -3
East* 119.6 2,369 2/3 imports 303 7,160 1,670 71 -102 -6
Jinan Shandong Sinopec 8.3 160 Local (Shengli) 0 520 117 73 +0 +0
Qilu, Zibo Shandong Sinopec 18.8 370 Local 50%, Imports (ME, Waf) 50% 0 750 174 47 +30 +21
Qingdao Shandong Sinopec 10.0 200 Imports only (Mideast sour crude) 0 950 224 112 -10 -4
Qingdao Petrochemical Shandong Sinopec 5.0 100 Imports only (Mideast sour crude) 0 320 75 75 +2 +3
Yangtze river delta 77.5 1,539 2/3 imports 303 4,620 1,080 70 -124 -10
Gaoqiao, Shanghai Shanghai Sinopec 13.1 260 Imports (sweet) 50%, local 0 250 58 22 -123 -68
Jinling, Nanjing Jiangsu Sinopec 19.0 378 Imports 50% 0 1,420 332 88 -2 -1
Shanghai (Jinshan) Shanghai Sinopec 14.1 280 Imports (light and medium) 75% 280 650 152 54 -102 -40
Yangzi, Nanjing Jiangsu Sinopec 8.1 161 Imports (sour) 60%, Shengli 0 850 199 124 +102 +105
Zhenhai, Ningbo Zhejiang Sinopec 23.2 460 Imports; over 2/3 sour 23 1,450 339 74 +1 +0
Central* 47.5 940 40-50% imports (Angola etc) 0 3,510 817 87 +5 +1
Anqing Anhui Sinopec 9.1 180 Imported sour, Shengli, Daqing 0 420 98 54 +2 +2
Changling, Yueyang Hunan Sinopec 8.1 160 Shengli 60-70%, imports 0 950 221 138 -7 -3
Jingmen Hubei Sinopec 5.1 100 Domestic 50%, imports 50% 0 400 93 93 +9 +11
Jiujiang Jiangxi Sinopec 6.5 130 Shengli (60-70%), imports 0 400 94 72 +2 +2
Luoyang Henan Sinopec 8.1 160 Imports (Oman/Russia) 50%+, domestic 0 600 139 87 +0 +0
Wuhan Hubei Sinopec 8.6 170 Domestic, imports 0 600 139 82 +0 +0
Yueyang Petchem (Baling) Hunan Sinopec 2.0 40 Shengli, Daqing, imports 0 140 33 83 -1 -3
South* 85.5 1,724 100% imports 0 5400.0 1281.0 74 -31 -2
Fujian, Quanzhou Fujian Sinopec 14.0 280 Imports (Yemen, Oman etc) 0 950 224 80 +5 +2
Hainan Hainan Sinopec 8.0 160 Imports (Mideast, Angola) 0 700 165 103 -6 -4
Qinzhou Guangxi Petrochina 9.6 200 Imports (light sweet Angolan/Australian) 0 750 185 93 -6 -3
Pengzhou Sichuan Petrochina 9.7 200 Imports (light sweet Kazakhstan) 0 na na na na na
Pearl river delta 44.2 884 100% imports 0 3,000 707 80 -24 -3
Guangzhou Guangdong Sinopec 15.7 314 Imports (Angola, Oman etc) 0 1,100 259 83 -9 -3
Maoming Guangdong Sinopec 23.5 470 Imports (Mideast sour crude) 0 1,500 354 75 -12 -3
Zhanjiang Dongxing Guangdong Sinopec 5.0 100 Imports (Libya, Angola etc) 0 400 94 94 -3 -3
Total Sinopec* 288.5 5,730 323 18,788 4,395 77 -68 -2
Total PetroChina* 200.4 4,008 380 12,206 2,881 72 +157 +6
Total above 46 refineries 463.6 9,246 703 29,180 6,850 74 -70 -1
Total China* 566.9 11,338 40,686 9,581 85 -68 -1
PetroChina + S'pec % of total China 86 76
Above 46 refineries % of total China 82 72
*China total and company totals include plants not listed. Regional totals are for listed plants only. PetroChina total includes refineries under CNPC and Wepec.
China total refinery capacity includes 46 major PetroChina/Sinopec-owned plants identified as well as 730,000 b/d of, smaller plants operated by the two oil giants.
Additionally, it includes CNOOCs Huizhou refinery in Guangdong and 10 of the countrys largest teakettle refineries totalling 1.36mn b/d.

Sinopec totaltotal
Sinopec runsruns mn mn
b/d b/d PetroChina total
PetroChina runs
total runs mn
mn b/db/d Spec vs PChina
Sinopec runs runs
vs PetroChina %%utilisation
utilisation

5.2 3.2 90

5.0 85
3.0
4.8 80
Sinopec
2.8
PetroChina
4.6 75

2.6
4.4 70

4.2 2.4 65
Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr

2014 Argus Media Ltd www.argusmedia.com Page 23


Argus China Petroleum Refinery throughputs July 2014

Refinery throughputs
May Apr YTD 2013
000t 000 b/d % utilisation 000t 000 b/d % utilisation 000t 000 b/d % utilisation 000 b/d %
Northeast* 5,790 1,360 66 6,140 1,491 73 33,920 1,636 80 -15 -1
Dalian (PetroChina) 0 0 0 400 97 24 5,050 244 60 -89 -37
Daqing petrochemical 550 130 68 540 131 69 2,790 135 71 -5 -4
Daqing refining & chemical 520 122 111 590 144 131 2,710 131 119 +17 +13
Fushun 750 177 77 720 175 76 3,610 175 76 +9 +5
Harbin 300 71 71 300 73 73 1,510 73 73 -1 -1
Jilin petrochemical 700 165 83 700 170 85 3,530 171 85 -2 -1
Jinxi 450 106 82 440 107 82 2,490 120 93 0 0
Jinzhou 600 141 78 570 139 77 2,770 134 75 0 0
Liaohe, Panjin 420 95 95 400 94 94 2,020 94 94 +4 +4
Liaoyang 800 188 94 780 190 95 3,990 193 96 +28 +15
Wepec Dalian 700 165 83 700 171 86 3,450 167 84 +25 +15
Northwest* 3,690 876 72 3,500 860 70 18,210 887 73 +133 +15
Changqing, Xianyang 400 94 94 400 98 98 1,990 96 96 +3 +3
Dushanzi 780 186 58 750 185 58 3,820 187 59 +10 +5
Karamay 320 76 76 300 74 74 1,530 74 75 +2 +3
Lanzhou 880 209 65 800 196 61 4,250 207 65 +38 +18
Tahe 300 70 75 300 73 78 1,500 72 77 0 0
Urumqi 660 158 83 600 148 78 3,390 166 88 +80 +48
Xian 130 31 62 130 32 64 650 31 64 0 0
Yumen 220 52 104 220 54 108 1,080 53 105 0 0
North* 2,920 678 72 2,420 581 62 14,760 704 75 -58 -8
Beijing Yanshan 700 165 61 220 54 20 3,300 160 59 -51 -32
Cangzhou 320 74 104 290 70 99 1,520 72 102 +23 +32
Dagang 420 96 98 380 90 92 2,000 94 96 -3 -3
Huabei, Renqiu 380 88 88 380 91 91 1,890 90 90 -8 -9
Shijiazhuang 0 0 0 150 36 36 1,100 53 53 -5 -10
Tianjin 1,100 255 85 1,000 240 80 4,950 236 79 -14 -6
East* 7,880 1,838 78 8,520 2,054 87 41,090 1,969 83 -60 -3
Jinan 500 113 71 600 140 88 2,670 124 77 +15 +12
Qilu, Zibo 880 204 55 750 180 49 3,930 187 51 -11 -6
Qingdao 800 189 95 910 222 111 4,100 198 99 -7 -4
Qingdao Petrochemical 280 66 66 350 85 85 1,730 84 84 -16 -19
Yangtze river delta 5,420 1,266 82 5,910 1,427 93 28,660 1,376 89 -40 -3
Gaoqiao, Shanghai 750 175 67 800 193 74 3,850 185 71 -14 -8
Jinling, Nanjing 1,400 327 87 1,200 290 77 6,300 302 80 -34 -11
Shanghai (Jinshan) 750 175 63 1,280 309 110 5,480 263 94 +1 +0
Yangzi, Nanjing 870 203 126 800 193 120 4,220 203 126 -14 -7
Zhenhai, Ningbo 1,650 386 84 1,830 442 96 8,810 423 92 +22 +5
Central* 3,220 749 80 2,850 685 73 15,250 728 78 -3 -0
Anqing 400 93 52 400 96 53 2,010 96 53 -1 -1
Changling, Yueyang 600 139 87 300 72 45 2,410 115 72 -36 -31
Jingmen 400 93 93 400 96 96 1,970 94 94 -4 -4
Jiujiang 400 94 72 380 92 71 1,920 93 71 -7 -8
Luoyang 600 139 87 580 139 87 3,030 144 90 -12 -8
Wuhan 680 158 93 650 156 92 3,210 153 90 +57 +37
Yueyang Petchem (Baling) 140 33 83 140 34 85 700 33 84 0 0
South* 5,600 1,328 77 5,190 1,272 74 26,580 1,294 77 +36 +3
Fujian, Quanzhou 950 224 80 880 214 76 4,660 226 81 -7 -3
Hainan 700 165 103 650 158 99 3,320 161 100 -7 -4
Qinzhou 750 185 93 700 178 89 3,570 181 - -6 -3
Pengzhou na na na na na na na na na na na
Pearl river delta 3,200 754 85 2,960 722 82 15,030 728 82 +56 +8
Guangzhou 1,200 283 90 1,100 268 85 5,520 267 85 +51 +19
Maoming 1,600 377 80 1,480 361 77 7,550 366 78 +7 +2
Zhanjiang Dongxing 400 94 94 380 93 93 1,960 95 95 -2 -2
Total Sinopec* 19,238 4,499 79 18,668 4,511 79 96,030 4,611 81 -68 -2
Total PetroChina* 10,996 2,589 65 10,986 2,673 67 59,270 2,865 72 +86 +3
Total above 46 refineries 29,100 6,829 74 28,620 6,943 75 149,810 7,220 79 +34 +1
Total China* 40,335 9,498 84 39,578 9,631 85 200,611 9,698 86 +85 +1
PetroChina + S'pec % of total China 75 75 77
Above 46 refineries % of total China 72 72 74
*China total and company totals include plants not listed. Regional totals are for listed plants only. PetroChina total includes refineries under CNPC and Wepec.
China total refinery capacity includes 46 major PetroChina/Sinopec-owned plants identified as well as 730,000 b/d of, smaller plants operated by the two oil giants.
Additionally, it includes CNOOCs Huizhou refinery in Guangdong and 10 of the countrys largest teakettle refineries totalling 1.36mn b/d.

Domestic vs import
Domestic economics
vs Import % utilisation
economics % utilisation Sweet vs vs
Sweet sour imports
sour imports %utilisation
% utilisation NWNW
China refinery
China refineryruns % utilisation
runs % utilisation
100 110 80
Northeast refineries running domestic crude Refineries running sweet imports Running Kazakh crude
95 Northeast refineries running imported crude 100 Refineries running sour imports Running domestic crude only
70
90 90
85 80
60
80 70
75 60 50
70 50
65 40 40
Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr

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Argus China Petroleum Refinery production July 2014

Refinery output by region, May


Province/city Product output as percentage of yield Naphtha
LPG Gasoline Jet-kerosine Diesel Fuel oil Asphalt Naphtha May Apr YTD YTD 13
Northeast 3.89 15.35 4.34 28.46 3.61 5.94 5.15 410.0 -20.9 2,314.8 -665.7
Heilongjiang 7.03 19.51 3.92 25.66 2.59 0.40 0.00 0.0 0.0 0.0 0.0
Jilin 4.61 19.88 0.57 26.93 2.43 0.00 4.71 45.4 -12.7 284.5 -10.9
Liaoning 2.60 12.96 5.21 29.78 4.21 9.09 7.12 364.6 -8.2 2,030.3 -654.8
Northwest 3.74 27.09 2.67 49.76 1.53 3.19 1.30 65.8 19.7 214.3 -714.8
Gansu 1.35 22.35 3.61 38.20 1.04 0.00 0.13 2.0 0.1 8.5 -3.5
Ningxia 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.6 1.3 18.1 8.4
Qinghai 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Shaanxi 9.68 75.71 4.05 95.80 2.07 6.91 0.75 5.5 1.8 13.9 2.0
Xinjiang 2.47 8.93 1.79 35.37 1.29 3.94 1.89 53.7 16.5 173.8 -721.7
North 4.00 16.92 5.22 25.65 3.17 2.46 8.51 341.9 -33.8 2,046.0 -173.2
Beijing 3.26 25.68 10.91 20.00 1.28 1.27 9.74 93.8 -4.8 500.3 13.6
Hebei 6.38 23.72 0.01 31.74 10.33 7.84 3.41 32.8 -12.4 256.8 -38.9
Inner Mongolia 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14.8 -17.8 134.2 -28.6
Shanxi 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Tianjin 1.94 3.34 4.54 18.21 0.43 0.00 9.59 200.5 1.2 1,154.7 -119.3
East 8.16 27.77 7.88 41.09 10.42 12.87 9.22 1,000.1 -8.3 4,880.8 505.6
Shandong 15.48 51.68 4.43 79.54 24.00 21.77 9.30 314.8 49.5 1,337.4 175.1
Yangtze river delta 4.84 16.92 9.44 23.64 4.26 8.83 9.19 685.3 -57.8 3,543.4 330.5
Jiangsu 4.89 16.44 7.96 17.48 7.59 11.17 10.69 333.9 20.3 1,598.7 50.4
Shanghai 5.37 24.15 12.33 31.32 1.82 2.17 6.98 144.0 -15.1 672.3 -205.2
Zhejiang 4.27 11.02 8.85 25.13 1.89 11.66 9.14 207.4 -63.0 1,272.4 485.2
Central 4.70 19.48 3.74 24.87 2.68 1.28 3.92 173.7 32.1 821.7 466.5
Anhui 9.30 35.20 0.00 49.73 1.18 0.00 0.00 0.0 0.0 0.0 -54.8
Henan 6.24 22.83 7.98 22.14 5.45 4.02 3.00 24.8 -0.3 115.4 -24.2
Hubei 3.45 14.26 4.75 26.64 0.63 0.40 9.11 135.3 18.8 558.9 456.7
Hunan 2.84 8.85 0.42 7.40 5.65 0.00 1.34 13.6 13.6 142.2 83.6
Jiangxi 4.60 32.51 4.56 31.69 0.07 3.16 0.00 0.0 0.0 5.2 5.2
South 5.44 21.48 10.31 33.83 4.48 4.65 6.21 444.2 -20.7 2,138.8 316.4
Fujian 1.70 12.97 4.30 26.32 2.08 3.22 0.00 0.0 0.0 0.0 0.0
Guangdong* 6.19 20.86 11.98 35.88 6.44 7.21 11.26 433.9 47.0 1,912.8 232.6
Guangxi 7.68 33.06 8.11 46.92 2.69 1.28 1.00 10.3 2.2 43.8 -7.8
Hainan 5.14 23.12 14.13 21.76 1.80 0.00 0.00 0.0 -69.9 182.2 91.6
Southwest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Chongqing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Sichuan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.0 0.0 0.0
Total China 5.51 22.44 6.20 34.95 5.31 6.63 6.17 2,435.7 -32.0 12,416.4 -268.8
Table shows an indicative product yield based on output as a percentage of total China throughputs *Pearl river delta

Refinery output by region 000t


Province/city Diesel Gasoline
May Apr YTD YTD 13 May Apr YTD YTD 13
Northeast 2,267.5 -184.7 12,923.5 -1,518.5 1,222.6 -21.3 6,990.5 -649.8
Heilongjiang 483.7 -10.5 2,341.9 -148.1 367.7 6.4 1,891.4 -209.4
Jilin 259.4 -43.9 1,515.4 -9.0 191.5 37.6 914.9 118.0
Liaoning 1,524.4 -130.3 9,066.2 -1,361.3 663.4 -65.3 4,184.2 -558.4
Northwest 2,526.0 12.0 12,144.4 346.6 1,375.1 -59.9 7,436.2 498.5
Gansu 578.2 4.4 2,848.9 75.2 338.3 0.2 1,787.2 129.7
Ningxia 180.8 29.8 811.6 43.9 181.1 0.5 889.8 67.3
Qinghai 65.8 10.2 283.9 14.9 50.5 2.3 238.6 51.1
Shaanxi 698.6 -123.3 3,810.1 221.9 552.1 -25.7 3,181.9 105.5
Xinjiang 1,002.6 90.9 4,389.9 -9.4 253.1 -37.2 1,338.7 144.8
North 1,030.6 -84.8 5,928.4 -712.4 679.7 -100.2 3,910.7 4.7
Beijing 192.6 -39.6 1,171.4 76.3 247.3 -16.7 1,258.1 210.9
Hebei 305.7 -8.4 1,614.4 -278.9 228.4 -26.6 1,281.7 -51.3
Inner Mongolia 151.5 -31.4 862.4 -33.3 134.2 7.3 611.5 26.7
Shanxi 0.0 0.0 0.0 0.0 0.0 0.0 8.4 -40.8
Tianjin 380.8 -5.4 2,280.2 -476.4 69.8 -64.2 751.0 -140.8
East 4,454.5 219.9 20,904.8 -553.2 3,010.9 130.0 13,823.0 2,224.3
Shandong 2,692.0 214.0 12,163.6 911.8 1,749.1 10.5 8,338.8 1,884.1
Yangtze river delta 1,762.5 5.9 8,741.2 -1,465.0 1,261.8 119.5 5,484.2 340.3
Jiangsu 545.8 -5.8 2,788.3 -391.1 513.3 78.3 2,080.2 206.5
Shanghai 646.3 55.4 3,075.2 -571.2 498.4 50.8 2,155.4 145.7
Zhejiang 570.4 -43.7 2,877.7 -502.7 250.1 -9.6 1,248.6 -11.9
Central 1,102.0 140.0 5,441.0 -448.5 863.1 91.7 4,339.2 199.3
Anhui 273.7 33.8 1,219.5 396.0 193.7 -9.0 940.9 540.1
Henan 182.8 21.4 804.9 -411.8 188.5 8.8 915.1 41.7
Hubei 395.8 5.5 1,893.0 199.3 211.9 -8.3 1,115.8 -53.9
Hunan 75.3 75.3 705.5 -623.9 90.1 90.1 569.5 -412.8
Jiangxi 174.4 4.0 818.1 -8.1 178.9 10.1 797.9 84.1
South 2,420.1 121.0 11,661.2 695.2 1,536.9 100.2 6,916.4 724.4
Fujian 344.0 60.5 1,510.5 189.9 169.5 3.3 735.7 5.4
Guangdong* 1,382.3 58.9 6,685.1 153.2 803.6 51.5 3,568.4 359.0
Guangxi 484.2 14.2 2,368.0 369.3 341.1 9.9 1,745.8 578.0
Hainan 209.6 -12.6 1,097.6 -17.2 222.7 35.5 866.5 -217.9
Southwest 347.4 -19.1 1,344.4 966.7 172.5 -49.4 834.5 460.0
Sichuan 347.4 -19.1 1,344.4 966.7 172.5 -49.4 834.5 460.0
Total China 14,148.1 225.3 70,347.7 -1,224.2 8,860.8 91.1 44,250.5 3,461.3
*Pearl river delta

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Argus China Petroleum Refinery production July 2014

Refinery output by region 000t


Province/city Jet-kerosine Fuel oil
May Apr YTD YTD 13 May Apr YTD YTD 13
Northeast 346.0 -20.9 1,865.8 294.1 287.8 -77.7 1,693.7 -159.8
Heilongjiang 73.9 -6.9 332.1 58.6 48.9 2.2 210.0 6.9
Jilin 5.5 5.5 5.5 5.5 23.4 4.9 105.7 -10.9
Liaoning 266.6 -19.5 1,528.2 230.0 215.5 -84.8 1,378.0 -155.8
Northwest 135.7 -4.9 686.7 13.2 77.5 8.9 388.1 -44.0
Gansu 54.6 8.8 249.5 -15.8 15.7 -2.8 96.9 6.0
Ningxia 0.8 -11.2 34.9 10.9 5.8 2.8 18.7 -14.8
Qinghai 0.0 0.0 0.0 0.0 4.2 0.8 18.4 1.8
Shaanxi 29.5 1.3 123.1 -18.9 15.1 2.5 77.0 -32.9
Xinjiang 50.8 -3.8 279.2 37.1 36.7 5.6 177.1 -4.0
North 209.9 -28.2 1,195.9 130.3 127.5 -12.2 655.7 -41.4
Beijing 105.1 -10.7 586.9 115.6 12.3 -1.3 69.8 -35.8
Hebei 0.1 -12.9 56.5 34.6 99.5 -4.5 479.2 10.8
Inner Mongolia 9.7 0.4 37.5 -62.2 6.8 0.1 33.0 -6.7
Tianjin 95.0 -5.0 515.0 42.2 8.9 -6.5 73.7 -9.7
East 854.1 50.6 3,898.2 639.6 1,130.0 -13.0 5,510.0 870.7
Shandong 150.1 -12.0 764.7 110.9 812.2 -23.8 3,659.8 520.7
Yangtze river delta 704.0 62.6 3,133.5 528.7 317.8 10.8 1,850.2 350.0
Jiangsu 248.5 10.9 1,159.0 170.8 237.2 33.8 1,274.3 292.1
Shanghai 254.5 39.4 1,040.8 226.7 37.6 -8.5 195.0 55.8
Zhejiang 201.0 12.3 933.7 131.2 43.0 -14.5 380.9 2.1
Central 165.9 8.0 846.4 51.0 118.7 58.0 516.9 155.3
Anhui 0.0 0.0 0.0 0.0 6.5 -4.7 31.5 12.5
Henan 65.9 3.9 300.4 -5.3 45.0 4.7 228.3 138.9
Hubei 70.6 -0.2 336.1 78.4 9.3 0.1 54.1 -3.9
Hunan 4.3 4.3 93.6 -61.2 57.5 57.5 190.5 23.2
Jiangxi 25.1 0.0 116.3 39.0 0.4 0.4 12.5 -15.4
South 737.6 27.9 3,406.6 875.8 320.4 -64.1 1,579.7 -271.9
Fujian 56.2 -0.7 296.9 -49.4 27.2 8.4 107.8 4.8
Guangdong* 461.6 12.3 2,122.1 378.7 248.1 -76.4 1,251.8 -140.5
Guangxi 83.7 5.1 390.8 381.1 27.8 -2.3 134.3 -151.1
Hainan 136.1 11.2 596.8 165.4 17.3 6.2 85.8 14.8
Southwest 0.0 0.0 0.0 -5.0 35.7 3.2 154.6 30.1
Sichuan 0.0 0.0 0.0 -5.0 35.7 3.2 154.6 30.1
Total China 2,449.2 32.6 11,899.6 1,997.8 2,097.6 -97.0 10,498.7 540.1
*Pearl river delta

Refinery output by region 000t


Province/city LPG Asphalt
May Apr YTD YTD 13 May Apr YTD YTD 13
Northeast 310.2 17.5 1,636.1 -157.6 473.0 -54.5 2,108.3 -27.4
Heilongjiang 132.5 13.4 634.9 -45.1 7.6 -1.3 40.8 4.4
Jilin 44.4 3.1 209.0 28.0 0.0 0.0 0.0 0.0
Liaoning 133.3 1.0 792.2 -140.4 465.4 -53.2 2,067.5 -31.8
Northwest 189.7 -13.2 929.4 10.4 162.2 1.2 768.6 -3.4
Gansu 20.5 1.7 104.8 -26.8 0.0 0.0 0.0 0.0
Ningxia 21.5 -5.6 129.8 18.2 0.0 0.0 0.0 0.0
Qinghai 7.0 0.3 31.6 5.0 0.0 0.0 0.0 0.0
Shaanxi 70.6 -9.5 368.9 -23.1 50.4 -20.6 268.3 154.1
Xinjiang 70.1 -0.1 294.3 37.1 111.8 21.8 500.3 -157.5
North 160.7 -30.8 959.3 -80.6 99.0 15.6 455.4 5.3
Beijing 31.4 -1.5 167.4 28.0 12.2 -6.4 44.0 -9.7
Hebei 61.4 -9.6 344.0 -46.1 75.5 23.7 361.9 16.0
Inner Mongolia 27.4 -5.6 148.6 -9.5 11.3 -1.7 49.5 -0.9
Tianjin 40.5 -14.1 299.3 -53.0 0.0 0.0 0.0 0.0
East 884.6 76.9 3,903.9 416.1 1,395.2 150.6 5,910.3 533.4
Shandong 523.9 47.5 2,180.2 415.1 736.9 72.6 2,666.3 222.7
Yangtze river delta 360.7 29.4 1,723.7 1.0 658.3 78.0 3,244.0 310.7
Jiangsu 152.8 9.8 728.7 -0.9 348.9 108.2 1,555.7 126.1
Shanghai 110.9 11.3 528.9 51.4 44.7 13.5 194.8 -97.2
Zhejiang 97.0 8.3 466.1 -49.4 264.7 -43.7 1,493.5 281.8
Central 208.1 45.9 976.1 -27.2 56.6 11.1 224.2 -212.0
Anhui 51.2 3.5 241.4 90.0 0.0 0.0 0.1 0.0
Henan 51.5 5.0 224.2 -0.6 33.2 13.3 131.6 -38.0
Hubei 51.2 7.2 235.2 19.6 6.0 -5.5 32.9 1.9
Hunan 28.9 28.9 156.1 -126.7 0.0 0.0 0.0 0.0
Jiangxi 25.3 1.3 119.2 -9.5 17.4 3.3 59.6 -175.9
South 389.5 13.8 1,851.7 240.6 333.0 24.4 1,555.1 -8.6
Fujian 22.2 6.5 91.7 3.0 42.1 4.2 161.4 22.2
Guangdong* 238.6 7.2 1,156.6 116.3 277.7 15.0 1,360.7 -33.2
Guangxi 79.2 7.6 359.9 67.5 13.2 5.2 33.0 2.3
Hainan 49.5 -7.5 243.5 53.7 0.0 0.0 0.0 0.0
Southwest 31.4 -25.4 167.2 69.0 98.9 -32.4 629.1 346.1
Chongqing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sichuan 31.4 -25.4 167.2 69.0 98.9 -32.4 629.1 346.1
Total China 2,174.2 84.6 10,423.7 470.7 2,617.9 116.0 11,651.0 633.2
*Pearl river delta

2014 Argus Media Ltd www.argusmedia.com Page 26


Argus China Petroleum Refinery output July 2014

Chinas total refinery output, Apr


China Sinopec CNPC Others*
% of Spec % of CNPC % of oth-
000t % Mar % of runs 000t % Mar % of China 000t % Mar % of China 000t % Mar % of China
runs runs ers runs
Crude runs* 39,578 -5.6 19,269 -0.2 48.7 12,029 -7.40 30.4 8,280 -14.0 20.9
Production
Gasoline 8,770 -6.0 22.2 4,199 2.9 47.9 21.8 2,773 -12.7 31.6 23.1 1,798 -13.3 20.5 21.7
Kerosine 2,417 -0.9 6.1 1,671 -2.6 69.1 8.7 565 -0.9 23.4 4.7 181 19.4 7.5 2.2
Diesel 13,923 -4.8 35.2 6,031 -0.2 43.3 31.3 4,902 -5.9 35.2 40.8 2,990 -11.3 21.5 36.1
Lubricants 512 -9.6 1.3 95 -16.8 18.6 0.5 166 -3.2 32.4 1.4 251 -10.5 49.0 3.0
Fuel oil 2,195 -8.1 5.5 275 -4.2 12.5 1.4 325 -6.8 14.8 2.7 1,595 -9.0 72.7 19.3
Total 5 products 27,817 -5.2 70.3 12,271 0.3 44.1 63.7 8,731 -7.8 31.4 72.6 6,815 -10.7 24.5 82.3
% CNPC/
Sinopec and CNPC
S'pec runs
Asphalt 2,502 -2.8 6.3 815 -2.1 32.6 2.6 1,687 -3.2 67.4 20.4
LPG 2,090 -1.7 5.3 1,335 -0.4 63.9 4.3 754 -4.0 36.1 9.1
Naphtha 4,534 -0.3 11.5
*many small independent refiners use feedstock other than crude, giving total product output higher than crude runs

Chinas total refinery output, Jan-Apr


China Sinopec CNPC Others*
% of Spec % of CNPC % of Oth-
000t % 13 % of runs 000t % 13 % of China 000t % 13 % of China 000t % 13 % of China
runs runs ers runs
Crude runs* 160,276 0.3 76,865 -1.3 48.0 50,050 3.6 31.2 33,362 -0.7 20.8
Production
Gasoline 35,389 8.6 22.1 16,165 6.1 45.7 21.0 11,774 6.9 33.3 23.5 7,451 17.7 21.1 22.3
Kerosine 9,451 21.7 5.9 6,528 17.0 69.1 8.5 2,342 42.0 24.8 4.7 581 6.9 6.1 1.7
Diesel 56,179 -1.9 35.1 24,300 -7.2 43.3 31.6 20,004 3.4 35.6 40.0 11,874 1.0 21.1 35.6
Lubricants 1,898 0.0 1.2 383 -3.3 20.2 0.5 619 -9.6 32.6 1.2 896 9.7 47.2 2.7
Fuel oil 8,401 7.7 5.2 1,202 -13.1 14.3 1.6 1,313 -23.7 15.6 2.6 5,886 25.3 70.1 17.6
Total 5 products 111,318 3.7 69.5 48,578 -0.4 43.6 63.2 36,052 4.7 32.4 72.0 26,688 10.5 24.0 80.0
% CNPC/
Sinopec and CNPC
S'pec runs
Asphalt 9,033 3.0 5.6 3,069 -8.0 34.0 2.4 5,964 9.8 66.0 17.9
LPG 8,250 4.6 5.1 5,331 -1.4 64.6 4.2 2,919 17.4 35.4 8.7
Naphtha 17,779 4.9 11.1
*many small independent refiners use feedstock other than crude, giving total product output higher than crude runs

Gasoline production '000 b/d Fuel oil production '000 b/d


Diesel production '000 b/d
Diesel production 000 b/d Gasoline production 000 b/d Fuel oil production 000 b/d
4,000 2,800 500
2011 2012
2011 2012 2,600 2013 2014 450
3,800 2013 2014
2,400
400
3,600 2,200
350
2,000
3,400
1,800 300
2011 2012
2013 2014
3,200 1,600 250
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

Jet-kerosine production '000 b/d Asphalt production '000 b/d LPG production '000 b/d
Jet-kerosine production 000 b/d Asphalt production 000 b/d LPG production 000 b/d
700 600 900

600 800
500

500 700

400
400 2011 2012 600 2011 2012
2011 2012
2013 2014 2013 2014 2013 2014
300 300 500
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct

2014 Argus Media Ltd www.argusmedia.com Page 27


Argus China Petroleum Fuel oil imports/exports July 2014

Chinese fuel oil (no. 5-7 grade) imports and exports in detail, May
Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Transport
Northeast 6.25 30.05 6.25 18.11 602.56
Dalian, Liaoning 6.25 30.05 6.25 18.11 602.56
Singapore Liaoning 30.05 6.25 18.11 602.56 Sea
North 31.14 149.69 31.14 95.81 640.09
Hohhot, Inner Mongolia 8.92 42.86 8.92 27.99 653.10
Russia Zibo, Shandong 42.86 8.92 27.99 653.10 Sea
Tianjin 21.81 104.83 21.81 66.56 634.96
South Korea Tanggu, Tianjin 44.83 9.33 29.36 654.99 Sea
Singapore Hangu, Tianjin 60.00 12.48 37.20 620.00 Sea
Shijiazhuang, Hebei 0.42 2.00 0.42 1.26 630.00
South Korea Qinhuangdao, Hebei 2.00 0.42 1.26 630.00 Sea
East 178.85 859.57 178.85 527.65 613.85
Shanghai 46.66 224.25 46.66 136.11 606.97
Malaysia Nanhui, Shanghai 12.11 2.52 7.48 618.00 Sea
Russia Nanhui, Shanghai 12.93 2.69 9.41 727.31 Sea
South Korea Nanhui, Shanghai 61.85 12.87 36.73 593.80 Sea
Singapore Nanhui, Shanghai 95.90 19.95 57.83 603.00 Sea
Japan Pudong, Shanghai 41.45 8.63 24.66 595.00 Sea
Hangzhou, Zhejiang 62.59 300.82 62.59 186.07 618.55
Russia Jiaxing, Zhejiang 28.48 5.93 21.14 742.17 Sea
South Korea Zhoushan, Zhejiang 41.84 8.71 24.89 595.00 Sea
Singapore Zhoushan, Zhejiang 90.24 18.78 56.00 620.55 Sea
Venezuela Zhoushan, Zhejiang 140.26 29.18 84.04 599.19 Sea
Qingdao, Shandong 47.40 227.79 47.40 139.18 611.02
Russia Yantai, Shandong 41.86 8.71 27.63 659.99 Sea
South Korea Qingdao, Shandong 21.97 4.57 13.18 599.99 Sea
Venezuela Qingdao, Shandong 163.96 34.12 98.38 600.00 Sea
Jinan, Shandong 20.66 99.27 20.66 61.55 620.00
Singapore Weifang, Shandong 99.27 20.66 61.55 620.00 Sea
Nanjing, Jiangsu 1.55 7.45 1.55 4.73 635.47
South Korea Lianyungang, Jiangsu 7.45 1.55 4.73 635.47 Sea
South 10.58 50.86 10.58 31.02 609.79
Xiamen, Fujian 8.40 40.36 8.40 24.71 612.34
Singapore Xiamen, Fujian 40.36 8.40 24.71 612.34 Sea
Huangpu, Guangdong 0.94 4.50 0.94 2.70 600.09
Singapore Guangzhou, Guangdong 4.50 0.94 2.70 600.09 Sea
Shenzhen, Guangdong 1.25 6.00 1.25 3.60 599.90
Singapore Zhuhai, Guangdong 6.00 1.25 3.60 599.90 Sea
Other 2.41 9.92 2.41 6.98 703.88
Various 2.41 9.92 2.41 6.98 703.88
Various small cargoes 2.46 0.51 1.56 632.52 Various
Other fuel oil 7.46 1.90 5.42 727.43 Various
Total imports 229.23 1,100.09 229.23 679.56 617.74
Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Transport
Northeast 11.35 54.54 11.35 34.01 623.52
Dalian, Liaoning 11.35 54.54 11.35 34.01 623.52
Panama Liaoning 15.16 3.15 9.44 623.12 Sea
Singapore Liaoning 6.69 1.39 4.15 621.24 Sea
Hong Kong Liaoning 7.56 1.57 4.70 622.14 Sea
Liberia Liaoning 4.14 0.86 2.58 624.61 Sea
Marshall Islands Liaoning 5.90 1.23 3.66 619.66 Sea
Greece Liaoning 2.25 0.47 1.41 627.39 Sea
Malta Liaoning 2.15 0.45 1.34 621.86 Sea
Cyprus Liaoning 1.78 0.37 1.10 620.36 Sea
UK Liaoning 2.07 0.43 1.29 622.89 Sea
Japan Liaoning 3.56 0.74 2.24 629.78 Sea
Bahamas Liaoning 1.59 0.33 1.01 635.28 Sea
Tanzania Liaoning 1.70 0.35 1.07 630.00 Sea
North 12.78 61.40 12.78 39.14 637.50
Tianjin 11.40 54.78 11.40 34.96 638.22
Panama Hangu, Tianjin 16.69 3.47 10.59 634.24 Sea
4.31 Tanggu, Tianjin 20.69 4.31 13.40 647.64 Sea
Singapore Hangu, Tianjin 2.28 0.47 1.44 633.01 Sea
Hong Kong Hangu, Tianjin 5.30 1.10 3.31 625.09 Sea
Liberia Hangu, Tianjin 6.98 1.45 4.42 632.77 Sea
0.59 Tanggu, Tianjin 2.83 0.59 1.80 634.98 Sea
Shijiazhuang, Hebei 1.38 6.62 1.38 4.18 631.57
Panama Qinhuangdao, Hebei 3.24 0.68 2.03 626.58 Sea
Singapore Qinhuangdao, Hebei 3.38 0.70 2.15 636.36 Sea
East 71.24 342.39 71.24 210.62 615.15
Shanghai 33.59 161.43 33.59 99.34 615.38
Panama Pudong, Shanghai 45.10 9.38 28.20 625.29 Sea
1.31 Nanhui, Shanghai 6.29 1.31 3.82 607.69 Sea
Singapore Pudong, Shanghai 15.70 3.27 9.59 610.48 Sea
Hong Kong Pudong, Shanghai 27.82 5.79 17.11 615.09 Sea
0.36 Nanhui, Shanghai 1.72 0.36 1.02 593.97 Sea

2014 Argus Media Ltd www.argusmedia.com Page 28


Argus China Petroleum Fuel oil imports/exports July 2014

Chinese fuel oil (no. 5-7 grade) imports and exports in detail, May
Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Transport
Liberia Pudong, Shanghai 14.96 3.11 9.24 617.82 Sea
1.22 Nanhui, Shanghai 5.88 1.22 3.48 590.86 Sea
Marshall Islands Pudong, Shanghai 6.68 1.39 4.10 614.04 Sea
Malta Pudong, Shanghai 3.18 0.66 1.99 626.89 Sea
Cyprus Pudong, Shanghai 1.65 0.34 1.02 617.29 Sea
Germany Nanhui, Shanghai 11.19 2.33 6.64 593.46 Sea
Antigua Pudong, Shanghai 6.07 1.26 3.78 622.22 Sea
Bahamas Pudong, Shanghai 7.04 1.47 4.30 610.94 Sea
Belgium Pudong, Shanghai 4.46 0.93 2.74 614.90 Sea
Gibraltar Pudong, Shanghai 2.00 0.42 1.23 613.00 Sea
St.Vincent and Grenadines Pudong, Shanghai 1.69 0.35 1.08 640.02 Sea
Hangzhou, Zhejiang 2.43 11.66 2.43 7.16 614.45
Panama Zhoushan, Zhejiang 3.56 0.74 2.19 613.08 Sea
Singapore Zhoushan, Zhejiang 1.75 0.36 1.08 617.19 Sea
Hong Kong Zhoushan, Zhejiang 4.77 0.99 2.93 614.43 Sea
Liberia Zhoushan, Zhejiang 1.58 0.33 0.97 614.56 Sea
Qingdao, Shandong 12.41 59.66 12.41 36.32 608.80
Panama Zhoushan, Zhejiang 7.74 1.61 4.94 637.43 Sea
0.33 Rizhao, Shandong 1.57 0.33 0.95 604.98 Sea
South Korea Qingdao, Shandong 44.83 9.33 26.90 600.00 Sea
Marshall Islands Zhoushan, Zhejiang 5.52 1.15 3.54 641.20 Sea
Nanjing, Jiangsu 14.37 69.06 14.37 42.76 619.13
Panama Lianyungang, Jiangsu 1.90 0.40 1.18 620.00 Sea
2.52 Taizhou, Jiangsu 12.11 2.52 7.45 615.04 Sea
2.12 Jiangyin, Jiangsu 10.17 2.12 6.34 623.40 Sea
0.44 Nantong, Jiangsu 2.13 0.44 1.31 615.96 Sea
South Korea Taizhou, Jiangsu 1.68 0.35 1.07 637.77 Sea
Singapore Taizhou, Jiangsu 3.06 0.64 1.91 624.02 Sea
0.36 Nantong, Jiangsu 1.72 0.36 1.05 613.99 Sea
Hong Kong Lianyungang, Jiangsu 1.85 0.38 1.16 628.73 Sea
1.86 Taizhou, Jiangsu 8.95 1.86 5.55 620.15 Sea
0.73 Jiangyin, Jiangsu 3.51 0.73 2.17 618.10 Sea
0.38 Nantong, Jiangsu 1.82 0.38 1.12 616.02 Sea
Liberia Jiangyin, Jiangsu 4.04 0.84 2.48 613.06 Sea
Marshall Islands Taizhou, Jiangsu 7.54 1.57 4.66 617.70 Sea
1.07 Jiangyin, Jiangsu 5.15 1.07 3.19 618.96 Sea
Greece Jiangyin, Jiangsu 1.83 0.38 1.13 616.18 Sea
Bahamas Taizhou, Jiangsu 1.61 0.33 0.99 617.45 Sea
Ningbo, Zhejiang 8.44 40.58 8.44 25.04 617.05
Panama Zhejiang, Zhejiang 9.73 2.02 6.01 617.88 Sea
Singapore Zhejiang, Zhejiang 10.56 2.20 6.50 615.71 Sea
Hong Kong Zhejiang, Zhejiang 8.01 1.67 5.00 623.74 Sea
Liberia Zhejiang, Zhejiang 9.21 1.92 5.63 611.64 Sea
Malta Zhejiang, Zhejiang 3.07 0.64 1.90 617.76 Sea
South 26.56 127.65 26.56 80.58 631.25
Xiamen, Fujian 6.88 33.08 6.88 20.67 624.86
Hong Kong Xiamen, Fujian 7.28 1.51 4.52 620.78 Sea
Indonesia Xiamen, Fujian 9.71 2.02 6.10 627.81 Sea
Australia Xiamen, Fujian 11.67 2.43 7.29 624.79 Sea
New Zealand Xiamen, Fujian 2.32 0.48 1.44 621.55 Sea
Philippines Xiamen, Fujian 2.10 0.44 1.32 629.52 Sea
Shenzhen, Guangdong 16.38 78.72 16.38 49.00 622.42
Panama Shenzhen, Guangdong 8.33 1.73 5.00 600.19 Sea
Singapore Shenzhen, Guangdong 12.66 2.63 7.62 602.45 Sea
Hong Kong Shenzhen, Guangdong 4.39 0.91 2.63 599.95 Sea
5.47 Zhuhai, Guangdong 26.29 5.47 17.55 667.62 Sea
Liberia Shenzhen, Guangdong 18.25 3.80 10.92 598.33 Sea
Cyprus Shenzhen, Guangdong 4.01 0.84 2.42 602.94 Sea
Germany Shenzhen, Guangdong 2.81 0.59 1.67 593.24 Sea
Cook Islands Shenzhen, Guangdong 1.99 0.41 1.19 596.38 Sea
Fuzhou, Fujian 0.43 2.05 0.43 1.34 656.25
Australia Fuzhou, Fujian 2.05 0.43 1.34 656.25 Sea
Haikou, Hainan 2.29 11.01 2.29 7.70 699.11
Malta Chengmai, Hainan 5.60 1.17 3.84 685.47 Sea
Bahamas Chengmai, Hainan 5.41 1.13 3.86 713.23 Sea
Nanning, Guangxi 0.58 2.80 0.58 1.87 669.41
Panama Qinzhou, Guangxi 2.80 0.58 1.87 669.41 Sea
Other 19.31 91.38 19.31 60.14 658.17
Various 19.31 91.38 19.31 60.14 658.17
Various small cargoes 85.08 17.70 53.59 629.85 Various
Other fuel oil 6.30 1.60 6.55 1,040.81 Various
Total exports 141.23 677.36 141.23 424.49 626.69
Net imports 88.01
^Destination (for imports) and origin (exports) in the customs entry usually refers to the shipments final destination, but occasionally indicates an intermediate point.
Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid-Yangtze refineries.
Pearl river delta destinations.

2014 Argus Media Ltd www.argusmedia.com Page 29


Argus China Petroleum Product imports/exports July 2014

Chinese jet-kerosine imports and exports in detail, May


Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Transport
North 40.62 159.79 40.62 155.38 972.41
Beijing 39.09 153.79 39.09 149.56 972.50
South Korea Chaoyang, Beijing 153.79 39.09 149.56 972.50 Sea
Tianjin 1.53 6.00 1.53 5.82 970.17
South Korea Dongli, Tianjin 6.00 1.53 5.82 970.17 Sea
East 22.75 89.50 22.75 87.01 972.12
Shanghai 22.75 89.50 22.75 87.01 972.12
South Korea Pudong, Shanghai 89.50 22.75 87.01 972.12 Sea
South 6.67 26.22 6.67 25.53 973.68
Guangdong 6.67 26.22 6.67 25.53 973.68
Japan Guangzhou, Guangdong 26.22 6.67 25.53 973.68 Sea
Total imports 70.03 275.51 70.03 267.92 972.44
Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Transport
Northeast 16.68 65.63 16.68 64.97 989.96
Dalian, Liaoning 10.09 39.68 10.09 37.72 950.68
Hong Kong Dalian, Liaoning 39.68 10.09 37.72 950.68 Sea
Shenyang, Liaoning 6.60 25.95 6.60 27.25 1,050.02
Japan Jinzhou, Liaoning 25.95 6.60 27.25 1,050.02 Sea
North 21.72 85.46 21.72 90.30 1,056.68
Beijing 21.72 85.46 21.72 90.30 1,056.68
South Korea Chaoyang, Beijing 1.56 0.40 1.65 1,062.38 Sea
Japan Chaoyang, Beijing 1.87 0.48 1.98 1,057.82 Sea
Hong Kong Chaoyang, Beijing 4.07 1.04 4.30 1,056.73 Sea
Canada Chaoyang, Beijing 4.63 1.18 4.89 1,057.06 Sea
France Chaoyang, Beijing 4.48 1.14 4.71 1,053.41 Sea
Russia Chaoyang, Beijing 3.43 0.87 3.64 1,060.69 Sea
Singapore Chaoyang, Beijing 3.62 0.92 3.83 1,056.05 Sea
UAE Chaoyang, Beijing 7.82 1.99 8.26 1,056.43 Sea
US Chaoyang, Beijing 27.49 6.99 29.02 1,055.89 Sea
Finland Chaoyang, Beijing 1.41 0.36 1.50 1,058.03 Sea
Malaysia Chaoyang, Beijing 1.78 0.45 1.88 1,055.68 Sea
UK Chaoyang, Beijing 3.06 0.78 3.24 1,056.79 Sea
Germany Chaoyang, Beijing 5.45 1.39 5.74 1,052.63 Sea
Qatar Chaoyang, Beijing 2.03 0.52 2.15 1,060.13 Sea
Thailand Chaoyang, Beijing 1.50 0.38 1.60 1,060.51 Sea
Ethiopia Chaoyang, Beijing 2.37 0.60 2.54 1,067.82 Sea
Netherlands Chaoyang, Beijing 3.02 0.77 3.18 1,053.70 Sea
Sweden Chaoyang, Beijing 1.81 0.46 1.91 1,059.80 Sea
Switzerland Chaoyang, Beijing 1.79 0.45 1.88 1,051.51 Sea
Turkey Chaoyang, Beijing 2.29 0.58 2.43 1,060.70 Sea
East 116.24 457.28 116.24 453.35 991.41
Shanghai(other) 47.83 188.17 47.83 199.60 1,060.73
South Korea Pudong, Shanghai 1.49 0.38 1.58 1,065.99 Sea
Japan Pudong, Shanghai 4.03 1.02 4.28 1,062.11 Sea
Hong Kong Pudong, Shanghai 7.24 1.84 7.66 1,058.73 Sea
11.35 Jinshan, Shanghai 44.66 11.35 47.33 1,059.99 Sea
Canada Pudong, Shanghai 5.66 1.44 6.01 1,061.87 Sea
Russia Pudong, Shanghai 8.24 2.10 8.79 1,065.75 Sea
Singapore Pudong, Shanghai 6.50 1.65 6.90 1,061.50 Sea
UAE Pudong, Shanghai 21.59 5.49 22.94 1,062.78 Sea
US Pudong, Shanghai 33.24 8.45 35.24 1,060.11 Sea
Finland Pudong, Shanghai 3.50 0.89 3.73 1,065.07 Sea
Malaysia Pudong, Shanghai 9.97 2.53 10.60 1,063.51 Sea
UK Pudong, Shanghai 6.00 1.52 6.35 1,059.04 Sea
Australia Pudong, Shanghai 5.71 1.45 6.05 1,059.70 Sea
Germany Pudong, Shanghai 13.66 3.47 14.44 1,057.16 Sea
Ethiopia Pudong, Shanghai 1.85 0.47 1.96 1,063.42 Sea
Netherlands Pudong, Shanghai 14.85 3.78 15.73 1,059.05 Sea
Nanjing, Jiangsu 24.46 96.22 24.46 95.03 987.65
Singapore Nanjing, Jiangsu 61.58 15.65 60.69 985.52 Sea
Australia Nanjing, Jiangsu 1.85 0.47 2.29 1,240.80 Sea
Germany Nanjing, Jiangsu 1.62 0.41 1.78 1,098.09 Sea
Thailand Nanjing, Jiangsu 1.33 0.34 1.47 1,108.52 Sea
Nigeria Nanjing, Jiangsu 29.84 7.59 28.80 965.02 Sea
Shanghai (Chongqing) 0.41 1.62 0.41 1.81 1,116.67
Finland Chongming, Chongqing 1.62 0.41 1.81 1,116.67 Sea
Ningbo, Zhejiang 19.83 78.01 19.83 66.31 850.01
Hong Kong Zhejiang, 78.01 19.83 66.31 850.01 Sea
Qingdao, Shandong 23.70 93.25 23.70 90.60 971.52
South Korea Qingdao, Shandong 53.10 13.50 50.86 957.91 Sea
Hong Kong Qingdao, Shandong 40.16 10.21 39.74 989.52 Sea
South 62.45 245.70 62.45 236.10 960.93
Guangdong, Guangdong 9.72 38.25 9.72 37.16 971.37
Hong Kong Guangzhou, Guangdong 38.25 9.72 37.16 971.37 Sea
Xiamen, Fujian 0.93 3.65 0.93 3.93 1,074.75
Hong Kong Xiamen, Fujian 3.65 0.93 3.93 1,074.75 Sea
Nanning, Guangxi 14.12 55.56 14.12 54.82 986.75
Hong Kong Qinzhou, Guangxi 24.87 6.32 24.60 989.22 Sea
Singapore Qinzhou, Guangxi 30.69 7.80 30.22 984.75 Sea
Huangpu, Guangdong 3.18 12.49 3.18 11.99 960.06
Macau Guangzhou, Guangdong 2.27 0.58 2.18 959.91 Sea
Philippines Guangzhou, Guangdong 10.22 2.60 9.82 960.09 Sea
Zhanjiang, Guangdong 26.08 102.58 26.08 93.40 910.53
Vietnam Maoming, Guangdong 92.06 23.40 83.88 911.21 Sea

Haikou, Hainan 7.73 30.40 7.73 32.07 1,054.70


Vietnam Yangpu EDZ, Hainan 14.90 3.79 15.94 1,070.01 Sea
Philippines Yangpu EDZ, Hainan 15.50 3.94 16.12 1,039.99 Sea
Shenzhen, Guangdong 0.70 2.76 0.70 2.74 989.87
US Shenzhen, Guangdong 2.76 0.70 2.74 989.87 Sea
Central 1.98 7.80 1.98 8.66 1,110.71
Chengdu, Sichuan 1.98 7.80 1.98 8.66 1,110.71
Japan Chengdu, Sichuan 5.71 1.45 6.35 1,112.12 Sea
Hong Kong Chengdu, Sichuan 2.09 0.53 2.31 1,106.85 Sea
Other 8.75 34.42 8.75 36.90 1,072.08
Various 8.75 34.42 8.75 36.90 1,072.08
Various small cargoes 34.42 8.75 36.90 1,072.08 Various
Total exports 227.82 896.27 227.82 890.28 993.31
Net imports -157.79
Pearl river delta destinations.

2014 Argus Media Ltd www.argusmedia.com Page 30


Argus China Petroleum Product imports/exports July 2014

Chinese gasoil/diesel imports and exports in detail, May


Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Transport
Northeast 17.81 70.06 17.81 71.37 1,018.68
Dalian, Liaoning 2.69 10.56 2.69 10.35 980.03
Hong Kong Dalian, Liaoning 10.56 2.69 10.35 980.03 Sea
Shenyang, Liaoning 15.13 59.50 15.13 61.02 1,025.55
Singapore Jinzhou, Liaoning 59.50 15.13 61.02 1,025.55 Sea
North 1.12 4.42 1.12 4.34 982.56
Hohhot, Inner Mongolia 0.44 1.72 0.44 1.80 1,049.56
Mongolia Hohhot, Inner Mongolia 1.72 0.44 1.80 1,049.56 Other
Tianjin 0.69 2.70 0.69 2.54 940.00
Singapore Tanggu,Tianjin 2.70 0.69 2.54 940.00 Sea
East 51.82 203.86 51.82 197.48 968.73
Shanghai 14.93 58.73 14.93 59.98 1,021.30
Bangladesh Pudong, Shanghai 29.51 7.50 29.51 1,000.00 Sea
Vietnam Jinshan, Shanghai 24.98 6.35 26.48 1,060.00 Sea
South Korea Nanhui, Shanghai 4.24 1.08 3.99 941.45 Sea
Nanjing, Jiangsu 36.45 143.38 36.45 135.72 946.59
Hong Kong Nanjing, Jiangsu 29.10 7.40 27.70 951.99 Sea
Philippines Nanjing, Jiangsu 29.96 7.62 28.52 952.00 Sea
Sri Lanka Nanjing, Jiangsu 84.32 21.43 79.50 942.80 Sea
Ningbo, Zhejiang 0.45 1.75 0.45 1.78 1,018.86
Panama Zhejiang 1.75 0.45 1.78 1,018.86 Sea
South 4.17 16.40 4.17 14.99 913.79
Zhanjiang, Guangdong 1.37 5.40 1.37 4.98 921.53
Macau Maoming, Guangdong 5.40 1.37 4.98 921.53 Sea
Huangpu, Guangdong 2.80 11.00 2.80 10.01 909.99
Vietnam Guangzhou, Guangdong 11.00 2.80 10.01 909.99 Sea
Southwest 4.05 15.92 4.05 14.59 915.98
Kunming, Yunnan 4.05 15.92 4.05 14.59 915.98
Myanmar Maoming, Guangdong 5.80 1.48 5.18 891.80 Sea
2.57 Guangzhou, Guangdong 10.12 2.57 9.41 929.84 Sea
Other 3.03 11.91 3.03 12.38 1,039.46
Various 3.03 11.91 3.03 12.38 1,039.46
Various small cargoes 11.91 3.03 12.38 1,039.46 Various
Total exports 82.00 322.57 82.00 315.15 976.99
Net imports -78.03
^Destination (for imports) and origin (exports) in the customs entry usually refers to the shipments final destination, but occasionally indicates an intermediate point.

Chinese gasoline imports and exports in detail, May


Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Transport
Total imports 0.00 0.00 0.00 0.00 0.00
Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Transport
Northeast 25.79 94.61 25.79 95.56 1,010.06
Shenyang, Liaoning 15.79 57.93 15.79 58.42 1,008.49
Singapore Jinzhou, Liaoning 9.11 2.48 9.13 1,002.09 Sea
Indonesia Jinzhou, Liaoning 48.82 13.31 49.30 1,009.69 Sea
Dalian, Liaoning 10.00 36.68 10.00 37.14 1,012.54
Singapore Dalian, Liaoning 30.97 8.44 31.47 1,016.14 Sea
North Korea Dalian, Liaoning 5.70 1.56 5.66 992.99 Sea
Northwest 2.43 8.90 2.43 10.04 1,128.79
Urumqi, Xinjiang 2.43 8.90 2.43 10.04 1,128.79
Kazakhstan Karamay, Xinjiang 8.90 2.43 10.04 1,128.79 Sea
North 0.50 1.84 0.50 2.94 1,600.00
Hohhot, Inner Mongolia 0.50 1.84 0.50 2.94 1,600.00
Mongolia Hohhot, Inner Mongolia 1.84 0.50 2.94 1,600.00 Other
East 16.32 59.87 16.32 60.33 1,007.65
Qingdao, Shandong 8.33 30.56 8.33 31.02 1,014.99
Indonesia Qingdao, Shandong 30.56 8.33 31.02 1,014.99 Sea
Shanghai(other) 7.99 29.31 7.99 29.31 1,000.00
Indonesia Pudong, Shanghai 29.31 7.99 29.31 1,000.00 Sea
South 24.57 90.13 24.57 87.16 967.04
Nanning, Guangxi 19.28 70.75 19.28 69.56 983.17
Singapore Qinzhou, Guangxi 13.55 3.69 12.93 954.60 Sea
Indonesia Qinzhou, Guangxi 57.20 15.59 56.62 989.93 Sea
Zhanjiang, Guangdong 5.28 19.38 5.28 17.60 908.17
Macau Maoming, Guangdong 9.30 2.53 8.36 898.58 Sea
Vietnam Maoming, Guangdong 10.09 2.75 9.25 917.01 Sea
Southwest 1.87 6.84 1.87 6.74 984.51
Kunming, Yunnan 1.87 6.84 1.87 6.74 984.51
Myanmar Maoming, Guangdong 2.87 0.78 2.57 897.80 Sea
1.08 Guangzhou, Guangdong 3.98 1.08 4.16 1,047.02 Sea
Total exports 71.47 262.18 71.47 262.76 1,002.21
Net imports -71.47
^Destination (for imports) and origin (exports) in the customs entry usually refers to the shipments final destination, but occasionally indicates an intermediate point.
Pearl river delta destinations.

Chinese naphtha imports and exports in detail, May


Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Transport
Northeast 8.86 30.88 8.86 32.01 1,036.70
Dalian, Liaoning 8.86 30.88 8.86 32.01 1,036.70
Norway Dalian, Liaoning 30.88 8.86 32.01 1,036.70 Sea
South 12.78 44.50 12.78 39.16 880.07
Shenzhen, Guangdong 12.78 44.50 12.78 39.16 880.07
Kuwait Huizhou, Guangdong 44.50 12.78 39.16 880.07 Sea
Total imports 21.64 75.38 21.64 71.17 944.23
Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Transport
Total exports 0.00 0.00 0.00 0.00 0.00
Net imports 21.64
^Destination (for imports) and origin (exports) in the customs entry usually refers to the shipments final destination, but occasionally indicates an intermediate point.

2014 Argus Media Ltd www.argusmedia.com Page 31


Argus China Petroleum Map and graphs July 2014

China: Key regional news


Mohe

RUSSIA Khabarovsk

Manzhouli
K A Z A K H S TA N

Daqing
Karamay
Houshaoshan Harbin
Kozmino
MONGOLIA Changchun
Alashankou Jilin
Dushanzi
Urumqi Sinopec Aershan
completes Tieling
K Y R G Y Z S TA N Shanshan Erenhot Shenyang
Hebei Fushun
Lunnan Liaoyang
Korla upgrade NORTH
Saihantala Dandong KOREA
(see p5) Jinzhou

Zepu Baotou Hohhot Yingkou Yalujiang


Qinhuangdao
Tazhong Yellow Linhe
river Beijing
Renqiu
Dalian Totals Wepec
Wuhai
Ordos Shijiazhuang Tianjin exit casts
SOUTH pall
Kekeya Taiyuan Cangzhou
Huatugou
Yinchuan Hejian overKOREA
refining
Ningxia
Huianbao Linyi sector (see p4)
Shikong Jingbian Qingdao
Handan Zibo
Golmud C H I N A Yanan Anyang
Jinan Rizhao
Puyang ConocoPhillips
Maling Dongming
Lanzhou Kaifeng cedes Penglai
Fuling debate
Luoyang
Zhengzhou Suzhou Xinyi
Huaian control (see p12)
Xianyang Xian
Bengbu Yancheng
revives shale Fuyang Taizhou Suzhou
Weigang Huainan
worries (see p9) Zhumadian Chuzhou
Shanghai
Hefei Nanjing
M

Maanshan
ek

NE Pengzhou Wanzhou Wuhan


on

Anqing
PA Ningbo
g

L Chengdu Zhenhai
riv

Lhasa e r Jingmen Jiujiang


riv
er

e Yueyang Nanchang
t z Quzhou
Leshan Chongqing ng
Product pipeline
Ya Changsha Shangrao Wenzhou
Oil firms
Product pipeline under construction Tongzi Xiangtan Zhuzhou Zhangshu
Zhaotong Fuzhou improve
Zunyi Loudi Pingxiang
Planned product pipeline Lijiang Ganzhou distribution
Tongren Quanzhou Quanzhou
Crude pipeline Dali
Guiyang Chenzhou (see p5)
Xiamen
Crude pipeline under construction Baoshan Kunming Guilin Xiamen
Meizhou
Liuzhou Guangzhou
Planned crude pipeline Chuxiong
Yuxi
Ruili Yangwei Baise Pearl river TA I WA N
ESPO stage 2 pipeline Lincang Huizhou
Zhongshan
M YA N M A R Nanning Shenzhen
Planned Burma Road pipeline (BURMA) Wenshan Guangxi Maoming Zhuhai
Completed Burma Road pipeline Qinzhou Zhanjiang
VIETNAM
Oil port Beihai

Key refineries Qinzhou to


LAOS
muscle in Hainan
Planned refineries
Ramree on diesel
Rail terminal
exports
Argus
(see p10)
THAILAND

Crude apparent demand mn b/d Petroleum apparent demand mn b/d Gasoline apparent demand mn b/d
Crude apparent demand mn b/d Petroleum apparent demand mn b/d Gasoline apparent demand mn b/d
11 12 2.6

11 2.4
10
2.2
10
2.0
9
9
1.8

8 8 1.6
Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr

Jet kerosine apparent demand mn b/d Diesel apparent demand mn b/d Fuel oil apparent demand mn b/d
Jet-kero apparent demand mn b/d Diesel apparent demand mn b/d Fuel oil apparent demand mn b/d
0.6 3.7 0.8

3.6
0.5 0.7
3.5
0.6
0.4 3.4
0.5
3.3
0.3
3.2 0.4

0.2 3.1 0.3


Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr Jan 13 Apr Jul Oct Jan 14 Apr

Information on PetroChina and Sinopec commercial crude, gasoline and diesel inventories is no longer published. Argus will restart its analysis of these data when they become available again.

2014 Argus Media Ltd www.argusmedia.com Page 32