China Gas Report
China’s net imports of oil surge
China’s net imports of oil increased by 8.4 percent in the first seven months of this year, offsetting the decrease of imported liquid gas and other oil products during the period. China’s net imports of oil is predicted to increase to 197 million tons from 183 million tons last year, accounting for 50 percent of the country’s total oil consumption for the first time. Short supply of diesel oil and gasoline changed growth structure of China’s refined oil imports, meanwhile, imports surge of diesel and gasoline made up the decreased imports of key fuel oil. In the first seven months, refined oil imports were up 16.8 percent year on year. At the same time, newly- launched refineries encouraged demand for oil and the imports of crude oil have exceeded 100 million tons.
S a u d i A r a b i a L P G E x p o r t C o n t r a c t P r i c e ( P e r M o n t h )
China imported 606,100 tons of gasoline in July this year, a new monthly record. China has become a net importer of gasoline since the May this year. e total domestic apparent demands (production plus net imports) for gasoline increased by 15 percent year on year in the first seven months.
South China Import LPG Price since 2002
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South China Propane CIF Price
South China Butane CIF Price
In July, total diesel imports reached 972,400 tons, the record from April 1994. From January to July, the accumulated net diesel imports recorded 4.57 million tons, In August, the Beijing Olympics, which needs diesel stock in advance, boosted domestic market’s demand for imported diesel. In the first seven months, the net import of fuel oil decreased one-third year on year.
Refined oil market optimistic in Q4
Basically, we take an optimistic view of the anticipation for the second half year. As the economic growth in Q3 is estimated to slow down, the growth of oil demands is in the second half year is possible a little bit lower than the previous half year. e
demand may speed up in Q4 as enterprises affected by the Olympic Games will restore production, tourism industry will see vigorous growth, the cancellation of cars limit and holding oil on price hike expectation. After excessive supply in August and September, the
market will be better in October. Some newly-added refineries, like Huizhou in Guangdong Province and Duzishan in Xinjiang, are projected to begin production in Q4, meanwhile, with increased imports of crude oil, the refined oil imports will tend to decline.