ESAI: China likely to become net exporter of high-sulfur diesel

By OGJ editors

HOUSTON, Feb. 15 -- China appears likely to become a net exporter of high-sulfur diesel, or gas oil, starting in February and lasting through March, said a report from Energy Security Analysis Inc. (ESAI), Boston.

High-sulfur diesel is China's primary transport fuel and increasingly is being used in electric power generators. Imports surged to 5-year highs in December. During the surge, gas oil imports rose to nearly 125,000 b/d compared with 20,000 b/d during the third quarter, ESAI said.

But now, Chinese imports have slowed dramatically as higher refinery runs largely have met China's domestic demand, said Rick Mueller, ESAI oil manager. He expects Chinese gas oil imports will remain far below their December level through March.

China Petroleum & Chemical Corp. (Sinopec) plans to shift to 500 ppm sulfur in its diesel production by Apr. 1, which "will undoubtedly disrupt gas oil production and raise the call on imports," Mueller said.

Related Articles

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Shell lets contracts for Majnoon development

03/18/2014 Shell Iraq Petroleum Development BV has let engineering and procurement services contracts to Foster Wheeler Kentz Energy Services DMCC, Dubai, for...

Ivanhoe halts Tamarack oil sands project citing lack of regulatory ‘clarity’

03/18/2014 Ivanhoe Energy Inc. has suspended activity on its Tamarack oil sands project pending approval for its thermal oil sands application from the govern...

Madagascar Oil provides Tsimiroro field activity update

03/18/2014 Madagascar Oil Ltd. reported that its steam-flood pilot (SFP) in Tsimiroro heavy oil field has increased oil production from 222 b/d in December 20...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected