Chinese refners boost ESPO Blend buying

摘要

China has become the biggest buyer of light sweet ESPO Blend crude from the Russian Pacifc port of Kozmino in the past few months. Chinese oil frms have taken 300,000 b/d of the 610,000 b/d of ESPO Blend loading at Kozmino in January-July (see graph, upper left). Japan has taken around 190,000 b/d of the grade during the same period. One reason for the increase in Chinese imports this year has been Rosneft’s commitment to raise supplies to CNPC by 100,000 b/d under a 2009 loan repay- ment scheme — although some cargoes were subsequently re-exported during the peak refnery turnaround period in May-June. CNPC already receives 320,000 b/d by pipeline, but began loading an extra 70,000 b/d by sea this year because of pipeline capacity constraints (AGM, 27 March, p2). CNPC shelved an interim plan to expand the pipeline to 400,000 b/d last year. China’s section of the ESPO pipeline will not now change until 2018, when it will rise to 600,000 b/d. CNPC will increase its Kozmino loadings of ESPO Blend to 100,000 b/d late this year.