Asia/Pacific News
China Grants Licences to Allow Crude Imports for Independent Refiners
China's Ministry of Commerce on Monday announced that it will grant licenses to directly import crude oil to two independent refineries, who are said to have recently won import quotas, Reuters reports.
The two companies, Shandong Dongming Petrochemical Group and Panjin Beifang Asphalt Fuel Co, are now reportedly able to import crude on their own.
The licence approvals come two weeks after the Ministry of Commerce announced that companies could apply for the import licences if they meet specific environmental and capacity requirements.
Licences are also said to include requirements to ensure applicants have at least five experienced traders on their team, as well as a minimum provincial-level bank credit of $1 billion, which some traders say could block out some potential applicants.
In an effort to boost private participation in the oil trade ahead of a planned crude oil futures contract, China has reportedly been working to widen the pool of companies to which awards quotas for imported crude.
So far, China has reportedly granted 715,800 barrels per day (bpd) in import quotas of crude to independent oil refiners, roughly 11 percent of total crude imports.
However, most quota winners still have to nominate a state-affiliated trading company as agent for any shipments.
Last week, it was reported that China's apparent oil demand reached 11.25 million barrels per day (bpd) during the month of June, a 4.1 percent rise compared to the same period in 2014.
