Chinese state-controlled refiner PetroChina's Jinzhou refinery in Liaoning province has exported its first diesel cargo to Chile, as Chile emerges as a more regular destination for Chinese exports and as suppliers push cargoes out of the well-supplied Asia-Pacific.
The Mari Jone, loaded with ultra-low sulphur diesel from Jinzhou in late September and discharged about 35,000t (261,100 bl) at Mejillones, Chile, on 3 November, oil analytics firm Vortexa's data showed. The export comes as China's state-controlled refiners are holding high inventories of diesel than other products such as gasoline.
This is the first diesel cargo exported to South America from the 180,000 b/d Jinzhou refinery in northeast China, said Petrochina. Under the free-trade agreement between China and Chile, there is a 6pc tariff reduction on eligible exports between the two countries.
The China to Chile diesel flow has become more regular this year. China exported 12,500 b/d diesel fuels to Chile during January-September, according to customs data. There was only 2,400 b/d of diesel flow along this route in 2019, and 4,000 b/d in 2018. Chinese diesel exports towards South America are expected to increase as the supply glut in Asia prompted gasoil suppliers to find alternate outlets for excess barrels.
China exported 386,000 b/d of diesel fuels in January-September, about 13.6pc lower than 446,800 b/d a year earlier. Export margins has remained unfavourable for Chinese refiners in the well-supplied Asia-Pacific region.
This article is reproduced at www.argusmedia.com
