The third batch of crude import quotas has been allocated by China's Ministry of Commerce, totaling 26.79 million mt, to 16 qualified refineries. The allocation significantly helps the 16 refineries to ease their quota shortage.
One source with a Dongying-based independent refinery said with the newly issued quotas, the refineries are now able to carry on with their plan to bring in imported crudes. The refinery has not been awarded any quota in the second batch, so it will have to put some of its cargoes into bonded storage first while awaiting a quota allocation.
MOFCOM did not issue any quota to 13 refineries in the second batch allocation in May. This made it difficult for those refineries to bring in crude with tight quota availability.
In China, refineries built and operated by state-owned companies like Sinopec, PetroChina, CNOOC and Sinochem do not need quotas to import crude. All other refineries require quotas to refine imported crude, including ChemChina and Norinco.
