China seen raising Saudi oil imports 11pc in 2013



REUTERS

Published — Sunday 9 December 2012

Last update 8 December 2012 1:20 am

| نسخة PDF Print News | A A

BEIJING: China’s crude oil imports from Saudi Arabia are likely to rise about 11 percent next year, faster than this year’s growth rate, as refiners lift output in anticipation of an economic recovery and an increase in fuel demand, industry officials said.
China, the world’s second-largest crude consumer, is expected to buy about 1.17 million barrels per day (bpd) of Saudi oil next year, 120,000 bpd more than this year’s contracted amount. The figures are based on estimates by industry sources with direct knowledge of the supply situation.
China, which imports about 5.3 million bpd of crude a year, is Saudi Arabia’s third largest customer after the US and Japan. In the year to October, imports from Saudi grew 8.6 percent on the year to 1.06 million bpd, compared to growth of 12.6 percent in 2011.
Most Asian buyers are being forced to rework import plans to factor in a cut in purchases from OPEC member Iran due to tightening Western sanctions. China, Iran’s top trading partner, has cut imports by 22.2 percent in the January-October period from a year earlier.
China sees Saudi Arabia, the world’s top oil exporter, as a strategic partner capable of providing stable supplies, and the state energy companies of both nations are in a $10 billion joint venture to build a 400,000-bpd refinery on Saudi Arabia’s Red Sea coast.
China’s crude oil demand is one of the factors propping up global crude prices, at around $100 per barrel . This year, China’s oil demand is forecast to grow just 2.8 percent in its slowest pace in more than a decade, the International Energy Agency says, due to a slowdown in the economy, but there are signs of a revival next year.
Sinopec Corp, Asia’s largest refiner, would take in more than 80 percent of the total Saudi supplies to China. China’s No.2 refiner, PetroChina, and state-run Sinochem Corp, will use up the rest, the sources said.
“Sinopec’s imports of Saudi crude have been increasing steadily over the past years and are expected to rise further as Sinopec’s refining capacity will rise steadily over the next few years,” said one Chinese trader.
Sinopec is estimated to increase Saudi imports by up to 80,000 bpd, as it adds new refining facilities at two subsidiary plants, a 200,000-bpd unit started in late November at Maoming in south China and a 160,000-bpd unit at Jinling refinery in east China. Sinopec and Aramco are expected to finalize the 2013 contract soon, traders said.
Most of the new capacity is geared toward processing high sulphur, or sour, crude.
The volume for the Fujian refinery jointly owned by Sinopec, Aramco and Exxon Mobil will remain the same, at 200,000 bpd.
PetroChina will raise its 2013 Saudi crude term volumes by 40,000 barrels per day (bpd) to around 160,000 bpd, up a third from 2012, trading executives have said.
The total increment matches the increase Sinopec agreed with Iraq, the world’s fastest growing crude exporter, as the refining giant sought to diversify supplies.

What's happening around Saudi Arabia

ABHA: Several Saudi businesswomen started traveling with a group of friends after recent regulations which allow women to travel without their mahram. These women said they find great fun to travel as a group with their friends and their children, wh...
RIYADH: The United Nations, Arab League and Gulf Cooperation Council welcomed the Kingdom-led coalition’s announcement of a five-day cease-fire, that took effect at midnight on Sunday, to push humanitarian relief in war-ravaged Yemen to the beleaguer...
ALKHOBAR: Jobless Saudi women constitute 70 percent of the unemployed. The Ministry of Economy and Planning said 58 percent of the jobless have preparatory school level education. According to the statistics, the annual unemployment growth rate among...
RIYADH: Saudi Arabia has found traces of a civilization that was domesticating horses about 9,000 years ago, 4,000 years earlier than previously thought. The discovery has shed new light on the origin of the Arabian horse, which has remained a great...
RIYADH: The Ministry of Labor in the Makkah region found 250 laborers working on various construction projects during restricted hours of the day. Punitive measures will be taken against the employers of these workers. According to a ministerial decr...
JEDDAH: When poverty is your guest for 15 years, gardens, parks, streets and pavements become your abode under the unavoidable scorching sun. One has to face hardships of hunger and survive on breadcrumbs. This is the situation of a 60-year-old Saudi...
JEDDAH: The negative attitudes of society in dealing with harassment and abuse cases prevent victims from reporting a great number of such cases to the authorities.Despite this, about 3,982 cases reached the country's criminal courts in 1435 and 1436...
AL-QATIF: The Omani security forces have arrested a man who, they said, accidentally fired a bullet that hit a young Saudi girl in a hotel in Musandam on Saturday. Four-year-old Zainab bint Mohammed Labad of Al-Awamiyah was playing in the hotel lobby...
Ramon Corvera, deputy chief of mission at the Argentinian Embassy in Riyadh.* Which particular aspect of Saudi Arabia you like the most? The natural beauty of the desert.* What is your favorite and oft-repeated Arabic word? Masha’Allah.* Which book i...
JEDDAH: The creativity and entrepreneurship community program of Umm Al-Qura University brought together 80 creative entrepreneurs to exchange their experiences and knowledge on Monday. Fawaz Saad, the dean of the institute for innovation and entrepr...
RIYADH: The August issue of ‘Nature’, the monthly magazine of King Abdulaziz City for Science and Technology (KACST), will focus on Middle East Respiratory Syndrome (MERS) corona, which has affected 1,055 people in the Kingdom since June 2012.The to...
LILLE, France: Saudi Arabia’s firm stand against the phenomenon of violence as well as religious, ethnic and cultural fanaticism came in for praise at an international symposium, which concluded here.The participants of the symposium on "Media Covera...
DAMMAM: The Saudi Arabian Boy Scouts Association (SABSA) is participating in the 23rd World Scout Jamboree with the slogan “A Spirit of Unity,” which starts July 28 and runs until August 8 in Kirara-hama, Japan. A total of 32,000 scouts from 144 nati...
JEDDAH: The Ministry of Labor was able to increase the number of Saudi women employees from 70,000 to 428,000 during the past four years, Abdul Munim Al-Shehri, assistant undersecretary for special programs, has said . The ministry is now working on...
JEDDAH: A court issued a 10-year prison sentence against a health employee in Al-Ahsa and fined him SR1 million for getting involved in forgery and fraud as well as embezzling public funds in contracts to import medical equipment for the Children and...

Stay Connected

Facebook