Iranian tanker delivers oil to China

The Iranian tanker carried 2 million barrels of oil to the port of Dalian in Northeastern China. (File/AFP)
Updated 09 October 2018
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Iranian tanker delivers oil to China

  • Iran is finding fewer takers for its crude ahead of US sanctions on its oil exports that will take effect in November
  • The shipping source said there is no buyer earmarked for the cargo

BEIJING: A vessel carrying 2 million barrels of Iranian oil discharged the crude into a bonded storage tank at the port of Dalian in northeast China on Monday, according to Refinitiv Eikon data and a shipping agent with knowledge of the matter.
Iran, the third-largest producer in the Organization of Petroleum Exporting Countries (OPEC), is finding fewer takers for its crude ahead of US sanctions on its oil exports that will go into effect on Nov. 4. The country previously held oil in storage at Dalian during the last round of sanctions in 2014 that was later sold to buyers in South Korea and India.
The very large crude carrier Dune, operated by National Iranian Tanker Co, offloaded oil into a bonded storage site at the Xingang section of the port, according to a shipping source based in Dalian, adding this was the first Iranian oil to discharge into bonded storage in nearly four years.
The tanker left the Iranian oil port at Kharg Island on Sept. 12, according to ship-tracking data.
The Xingang area is home to several tank farms including commercial and strategic reserves. China National Petroleum Corp. (CNPC) and Dalian Port PDA Co. Ltd. both operate commercial storage in the area, according to information on their company websites.
An investor relations official at Dalian Port declined to comment.
A manager at the bonded crude storage site operated by Dalian Port declined to comment whether Iranian oil were moved to the tanks, calling it the “worst time” to give any comment regarding Iranian crude because of the US sanctions.
A person at the CNPC-owned storage site who refused to identify himself when contacted by Reuters said it is “impossible” that the oil is stored there.
A spokesman for CNPC said he had no information on this matter.
An executive with the China office of National Iranian Oil Co. (NIOC) declined to comment. NIOC also did not respond to an email request seeking comment if it is storing oil at Dalian.
The shipping source said there is no buyer earmarked for the cargo.
Three other NITC tankers are set to arrive in Dalian in the next week or two, the ship-tracking data shows. Some of those cargoes are also likely to end up in bonded storage as the refineries in the region, controlled by CNPC, are not equipped to process Iranian oil, said three sources at state-run Chinese refiners.
China’s Iranian oil buyers, including state-owned refiner Sinopec and state trader Zhuhai Zhenrong Corp, have shifted their cargoes to vessels owned by NITC since July to keep supplies flowing as the US sanctions have been re-imposed.
Keeping oil in bonded storage gives the shipment owner the option to sell into China or to other buyers in the region.
In early 2014, NIOC leased bonded tanks in Dalian and oil from there was shipped to South Korea and India, Reuters reported.


UN agency to donors: Back Palestine efforts anew, keep funding at 2018 levels

The UN Relief and Works Agency provides food assistance to 1 million people in Gaza every three months, which is half of the area’s population. (AFP)
Updated 10 min 25 sec ago
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UN agency to donors: Back Palestine efforts anew, keep funding at 2018 levels

  • ‘Exceptional’ contributions enabled the UN Relief and Works Agency to fund its entire 2018 budget of $1.2 billion
  • ‘Countries that supported us last year I would say were extremely proud to contribute to the solution’

UNITED NATIONS: The head of the UN agency that helps 5.3 million Palestinian refugees on Monday urged donors who filled a $446 million hole in its budget last year after the Trump administration drastically cut the US contribution to be equally generous this year.
“Last year we had an extraordinary crisis and an out of the ordinary response,” Pierre Krahenbuhl said in an interview with The Associated Press. “Our humble request to all the donors is: Please keep your funding levels at the same level as 2018.”
He said he has been thanking donors for their “exceptional” contributions that enabled the UN Relief and Works Agency to fund its entire 2018 budget of $1.2 billion.
Krahenbuhl said the agency, known as UNRWA, also adopted a $1.2 billion budget for 2019, and this year it is getting nothing from the United States. Last year, the Trump administration gave $60 million, a dramatic reduction from the $360 million it provided in 2017, when the United States was the agency’s largest donor.
US President Donald Trump said in January 2018 that the Palestinians must return to peace talks to receive US aid money — a comment that raised alarm from leaders of 21 international humanitarian groups, who protested that the administration’s link between aid and political objectives was “dangerous.”
Krahenbuhl said the campaign that UNRWA launched immediately after the US slashed its contribution succeeded as a result of “very important donations,” starting with the European Union, which became the agency’s biggest donor. He said 40 countries and institutions increased funding to UNRWA, including Germany, United Kingdom, Sweden, Japan, Canada and Australia. Qatar, Saudi Arabia, United Arab Emirates and Kuwait each gave $50 million, he said.
“Countries that supported us last year I would say were extremely proud to contribute to the solution,” Krahenbuhl said.
Last year, he said, the number of multi-year funding agreements with donors rose to 19.
So UNRWA right now is in “a somewhat better position” than it was last year, with a shortfall of just over $200 million, Krahenbuhl said.
So far this year, the agency has received $245 million and is expecting $100 million more, he said, which means it should be financially OK until about May.
“But from then on we’ll start to ... reach some crisis points,” Krahenbuhl said.
He said UNRWA is thinking about holding some events in the next two or three months “to collectively mobilize the donor community.” In June, he said, there will be a pledging conference at which the UN and donors will take stock of the agency’s financial situation.
Krahenbuhl said he is committed to making up for the $60 million that UNRWA is losing from the United States this year through internal cost saving measures to reduce the agency’s expenditures.
“That’s going to hurt, but that’s where we feel our financial responsibility, so that we preserve the trust that was generated by the level of donors,” he said, noting that UNRWA last year saved $92 million.
Krahenbuhl said donors recognize the agency does important work. He pointed to the 280,000 boys and girls in UNRWA schools in Gaza and the food assistance the agency provides to 1 million people there every three months. “That’s half of Gaza’s population,” he said.
The UNRWA chief also said that continuing the agency’s services to Palestinian refugees in Syria, Lebanon, Jordan, Gaza and elsewhere in the Mideast “is in everybody’s interest” and important for stability in the region.
“If you take Gaza right now ... it’s continuously at the razor’s edge,” Krahenbuhl said, stressing that any shift in humanitarian assistance or conditions that people live in “can trigger the need for justification, or the excuse ... to go back to war.”
Noting his own experience in the 2014 war between Israel and Hamas, which controls Gaza, Krahenbuhl said, “this is absolutely devastating and needs to be avoided.”