Jet fuel exports rose to 2.75 million tonnes, up dramatically from 1.23 million tonnes in the same period last year.
January-February customs data showed combined exports of refined oil products - which included diesel, gasoline, aviation fuel and marine fuel - soared 74.2% from a low base a year earlier to nearly 12.7 million tonnes.
Beijing issued 18.99 million tonnes of export quotas for refined fuel in the first batch of its 2023 allocation, up 46% from the corresponding 2022 allotment, as it aimed to ramp up refinery output and hoped to capture stronger export margins. Higher gasoline exports reflected generous export quotas for the first quarter and export margins that were better than a year before. China-based energy consultancy JLC estimated that January's export margins on gasoline, while still negative, were 572 yuan ($8.30) per tonne higher than the same period last year. Export margins for diesel were also higher than a year before, encouraging refiners to sell overseas. A broader slowdown in the property sector has depressed domestic demand for diesel, used as truck fuel in the agricultural and construction sectors, helping to prop up export sales, according to consultancies Wood Mackenzie, Longzhong and JLC. A recovery in Asian air travel, stimulated by the end of COVID-related travel restrictions, has significantly increased demand for kerosene from bonded aviation fuel bunkers.
While China's domestic air travel market has picked up, the
resumption of international flights has also pushed up demand
for refuelling airplanes at Chinese airports. Such fuel sales
are counted as exports.
Customs data also showed that China's imports of liquefied
natural gas (LNG) in January and February fell 11.9% to 11.12
million tonnes, down from 12.68 million tonnes a year earlier.
Below are details of fuel exports and imports of LNG in
millions of tonnes, with percentage changes provided by customs.
Export Feb Jan-Feb YTD y/y % change
Gasoline 1.03 2.27 + 20.1
Diesel 2.15 4.54 + 1005.4
Jet fuel 1.31 2.75 + 124.6
Import
LNG 5.21 11.12 - 11.9
(Reporting by Andrew Hayley, Brenda Goh and Bian Jing; Editing by Bradley Perrett and Sonali Paul)
