China to receive rare gasoil cargo from India amid EU sanctions

China is set to receive a rare gasoil cargo from India, with a 65,000 mt cargo from Nayara Energy heading to Asia's biggest oil consumer, sources with knowledge of the matter told Platts Aug. 13.

This comes as other global buyers adopt a cautious approach to buying from the Rosneft-backed Vadinar refinery following the EU's move to impose sanctions.

China typically secures gasoil/marine diesel from neighboring South Korea, primarily for bonded bunkering, Chinese market sources said. The country's most recent imports from India were in April 2020, at 42,132 mt, Chinese customs data showed.

Although the EU sanctions are set to take effect in January 2026, overseas oil product buyers have been reluctant to purchase from Nayara Energy since the sanctions were announced on July 18.

S&P Global Commodities at Sea data showed the LR1 vessel Em Zenith loaded 509,254 barrels of gasoil at the Nayara terminal in Vadinar and departed July 18. The vessel set Zhoushan, a bunkering hub with storage facilities in China, as its destination on Aug. 12 after bunkering in Singapore.

Sources in India and China said it was unclear whether the cargo had already been sold to an end-user in China or was still being held by a trader.

Zhoushan-based sources from China's leading state-run oil companies either denied being the buyer or expressed uncertainty about the deal.

One of the Zhoushan-based sources said: "It is more likely to go to small bunker suppliers."

Alternatively, market sources said the barrels may be stored in the bonded storage facility in Zhoushan.