China's Diesel Shortage Relieved as Sinopec Switches to Import Mode

Strategic Insights -

China is facing a severe diesel shortage, which began in August and has since spread across the country. To alleviate the situation, China's state-owned oil companies, Sinopec and PetroChina, have temporarily halted diesel exports and initiated import efforts. Sinopec has begun importing 280,000 tons of diesel, while PetroChina has imported 200,000 tons, with the first batches arriving at major ports in late November. Sinopec has taken steps to increase diesel production, boosting output by 1.13 million tons in August-October compared to the same period last year.

Key Takeaways:

  • Sinopec ceased exporting diesel in October and began importing 280,000 tons to mitigate the domestic shortage.
  • PetroChina imported 200,000 tons of diesel, with the first batch of 35,000 tons arriving in China on November 19.
  • Sinopec increased diesel production by 1.13 million tons (6.2%) between August and October compared to the same period last year.
  • Sinopec produced 6.66 million tons of diesel monthly in October, a year-over-year increase of 8.5%.
  • The company forecasts over 587,000 tons of daily diesel production in November, a significant jump from previous months.
  • The diesel shortage began in August and has affected various regions in China, prompting Sinopec to increase diesel supply by 6.2% in just three months.

Statistics:

  • 280,000 tons: the amount of diesel Sinopec is importing to alleviate the domestic shortage.
  • 200,000 tons: the amount of diesel PetroChina imported, with the first batch of 35,000 tons arriving in China on November 19.
  • 1.13 million tons: the increase in Sinopec's diesel production between August-October compared to the same period last year.
  • 6.66 million tons: Sinopec's monthly diesel production in October, a 8.5% year-over-year increase.
  • 587,000 tons: Sinopec's forecasted daily diesel production in November, a significant jump from previous months.

Sources:

  • SinoCast Daily Business Beat, November 24, 2010
  • SinoCast Daily Business Beat, October [no date provided] (specifically mentioned import decisions by Sinopec and PetroChina)

Note: The source material does not explicitly mention the date for the second citation.