China imported record volumes of crude oil in 1H23

China imported an average of 11.4 million bpd of crude oil in 1H23, a 12% increase from 2022’s annual average of 10.2 million bpd.

In 1H23, China's crude oil imports increased from 8 of the 10 top countries it imported crude oil from in 2022, according to China’s General Administration of Customs data.

China sourced much of the additional crude oil it imported in 1H23 from Russia, Iran, Brazil, and the US. Compared with 2022 averages, China’s imports from Russia increased by 23% (400 000 bpd), from Saudi Arabia by 7% (130 000 bpd), and from Brazil by 49% (250 000 bpd). The 2.6 million bpd of crude oil that China imported from Russia in June is the largest volume China has ever imported from any country in any month. China’s imports from the US in the 1H23 more than doubled from 2022.

Customs data also indicate that imports from Malaysia increased 330 000 bpd (46%) to 1 million bpd in 1H23. During this period, the import volume from Malaysia exceeded total production in Malaysia. Industry analysts indicate that much of the oil that was shipped from Iran to China was relabelled as originating from countries such as Malaysia, the United Arab Emirates, and Oman to avoid sanctions.

According to its General Administration of Customs, refiners in China used the crude oil to process a record 14.7 million bpd of crude oil in 1H23, an 8% increase from 2022’s annual average of 13.5 million bpd and more than China’s record-high annual average, set in 2021.

New refinery capacity was one reason for the record crude oil processing. The 320 000 bpd Shenghong Petrochemical refinery in Lianyungang began operations in November 2022, and the 400 000 bpd PetroChina Jieyang refinery began trial runs in February 2023.

Read the article online at: https://www.hydrocarbonengineering.com/refining/19092023/china-imported-record-volumes-of-crude-oil-in-1h23/