The Ministry of Commerce (MOFCOM) of the PRC issued gasoil import quota for the second quarter of 2011 between late April and early May, in view of slightly tight domestic supply, C1 learned from sources close to PetroChina's and Sinopec's branches responsible for imports and exports.
The total quota is 500,000-700,000mt for the quarter, with 200,000-300,000mt for Sinopec and PetroChina, respectively, about 100,000mt for CNOOC, sources said. The quota will enable oil majors to import quite large volumes of gasoil if supply shortage appears in the domestic market, but it may not be carried out, some industry sources noted. Previously PetroChina announced it would import about 600,000mt of gasoil in the first quarter, but this plan was hardly implemented, a source furthered.
So far, the three oil giants have not started to source gasoil in the international market yet, according to Singapore-based trading sources.
However, some trading sources said it is possible for the three companies to import gasoil in the second quarter, because lot of refinery maintenance has been scheduled for July and supply will stay a little tight amid concern about power supply shortage. But the actual imports may be far below the quota, they added.
If China boosts gasoil imports in the quarter, it will be a bullish factor for the Asian market where gasoil supply is increasing after maintenance, said an international trader.
In addition, PetroChina and Sinopec have lately suspended plans for gasoil and gasoline exports, except for exports to Hong Kong and Macao.
