The Commerce Ministry Of China on Monday said that it would start the application process for crude oil import quotas for 2021 on November 15. It noted that qualified refiners could apply for up to 243 million ton crude oil import quotas for next year. The next year’s quotas are 20.3% above the 202 million tons in 2019 and 2020. Refining industry sources said the additional 41 million ton quotas should cover feedstock requirements of ZPC’s 20 million tons/year phase 2 project in Zhejiang province and Shenghong Petrochemical’s new 16 million tons/year capacity in Jiangsu province.
The incremental volume could also cover trading companies that have secured an import license. These companies include Fujian Minhai Energy International Trading Company, Xiamen Xiangyu Logistic Group, and Xiamen Tongxin Trading Company, trading sources said.
So far this year, a total 184.55 million tons of import quotas have been granted to refiners and traders. Of which, 44 qualified independent refineries secured 179.4 million tons of quotas, accounting for 97% of the total quota to non-state-owned companies.
Qualified companies will receive the first batch of quotas for next year on December 31, 2020. The remaining allowance will be awarded in the early months of 2021, depending on market conditions. Companies which have not imported crude oil in the last two years will not be eligible for the license, the ministry said. The ministry will allow companies to reduce their quotas by returning the remaining quotas to the ministry by September 1, 2021.
