21 Jan 2022 | 10:12 UTC

CHINA DATA: Dec gasoil output hits record high despite throughput cut

Highlights

Gasoil yield hits 41-month high of 29%

Jet fuel yield hits multiyear low of 3.2%

Jet fuel exports to be stable despite export quota slump

China's gasoil output from refineries rose 2.5% to hit a fresh record high of 16.86 million mt in December from the previous record in November despite a fall in crude throughput, data from the National Bureau of Statistics showed on Jan. 21.

The previous record high was 16.45 million mt in November, according to NBS data.

Meanwhile, the country's crude throughput declined 1.5% on the month, pushing up the gasoil production yield to 41-month high of 28.8% in December compared with 27.6% in November, NBS data showed.

In comparison, Chinese refineries lowered gasoil yield to an average of 22.2% in the first ten months due to slowing growth in domestic demand. Supplies were also strong from the barrels blended with light cycle oil in first half of 2021.

"Gasoil demand has been slow in winter, but jet fuel demand is worse, so that we shift the yield between the two products," a refining source said.

This brought China's gasoil output from refineries to 163.37 million mt in 2021, up 2.7% year on year despite a reduction in LCO imports from 2020.

Gasoil blended from LCO is not included in NBS's output data. Imports of the material fell about one third on the year in 2021 as the government introduced consumption tax on it since Jun. 12.

Jet fuel output hits low

In December, China produced 1.90 million mt of jet fuel in December, which was the lowest output since February 2013.

Jet fuel yield, meanwhile, dropped to 3.2%, which was the lowest level since August 2008.

Domestic demand for the fuel remained weak as China's tight coronavirus-related controls kept discouraging traveling.

This led China's jet fuel output to fall 2.6% to 39.44 million mt in 2021 from 2020 to become the only key oil product to register a year-on-year reduction.

Moreover, the country's jet fuel exports are expected to be stable despite Beijing slashing the combined export quotas for gasoline, gasoil and jet fuel by 56% year on year in the first batch of allocation for 2022.

"As flights outside of China are expected to recover more quickly than in China, where the zero COVID strategy will remain in place," S&P Global Platts Analytics said in a Jan. 7 report, suggesting that China's share of jet fuel exports could be stable to higher compared with gasoline and gasoil.

Platts Analytics expected China's jet fuel exports, including those for bonded refueling in China's international airports, to edge up 7,000 b/d on the year in 2022.

China exported 8.56 million mt of jet fuel in 2021, falling 14.2% year on year, customs data showed.

CHINA'S PETROLEUM OUTPUT (million mt)

Dec-21
Dec-20*
Change
Nov-21
Change
Crude oil
16.47
16.19
1.7%
16.31
1.0%
Crude throughput
58.73
59.99
-2.1%
59.64
-1.5%
LPG
3.76
4.24
-11.3%
4.01
-6.2%
Naphtha
4.94
4.09
20.7%
4.82
2.5%
Gasoline
13.54
11.71
15.6%
13.51
0.2%
Jet/kerosene
1.90
3.75
-49.4%
2.26
-16.1%
Gasoil
16.86
13.01
29.6%
16.45
2.5%
Fuel oil
4.35
2.91
49.3%
4.27
1.8%
2021
2020
Change
Crude oil
198.98
194.31
2.4%
Crude throughput
703.55
674.55
4.3%
LPG
47.57
44.92
5.9%
Naphtha
49.52
43.98
12.6%
Gasoline
154.57
131.78
17.3%
Jet/kerosene
39.44
40.49
-2.6%
Gasoil
163.37
159.07
2.7%
Fuel oil
43.50
35.63
22.1%

*Figures for 2020 differ from volumes reported earlier due to NBS revisions

Source: China's National Bureau of Statistics