CNPC Imports Diesel to Alleviate Shortage

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Since October, China's diesel supply has started to tighten again. In order to alleviate the shortage and ensure refined oil supply, China National Petroleum Corporation (CNPC) (Beijing) has imported more than 310,000 tons of refined oil in the first three quarters of the year. On top of the 310,000 tons, another rush order of 100,000 tons of diesel was placed with a foreign supplier in November.

The first shipment of diesel arrived at Zhuhai Port in Guangdong Province in late November. The Guangdong foreign trade authority, the Zhuhai Customs agency and the Quarantine Bureau at the port worked together to process the paperwork for the import. All importing formalities were completed in one day, and the diesel was quickly readied for the pump. An additional 650,000 tons of diesel will arrive by ship in two batches soon.

To alleviate the refined oil supply shortage in southern China, CNPC has adopted multiple measures, including production capacity expansion, rearranging/postponing of refining equipment overhaul and import increase. Statistics show that by mid-November, CNPC had imported more than 400,000 tons of refined oil.

Since October, CNPC has urged its refining companies to ensure safe and stable production, maximize refining capacity, produce more diesel and higher grade gasoline to meet market demand. All of CNPC's distribution companies have been urged to fully tap their stock and dispatch refined oil to retail channels. CNPC's international affairs department is also working to purchase more resources through all trade means with international market. Meanwhile, oil exports are restricted.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.