Singapore — China has received around 2.41 million mt of Russian ESPO crude via two15 million mt/year China-Russia crude pipelines in January, up 66% on theyear, according to a local media report Monday, citing data from theHeilongjiang Entry-Exit Inspection and Quarantine Bureau.
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This was up 960,000 mt from January 2017, after the second China-Russiacrude pipeline started operations in January 2018.
It was also part of PetroChina's plan to raise the ESPO crude importsfrom 20 million mt/year to 30 million mt/year from 2018.
The total transmission volume of 2.41 million mt translates to a combinedoperating rate of 96.4% at the two pipelines, each with a capacity of 15million mt/year.
If the pipelines operate at the same rate for the rest of the year, thetotal transmit volume could reach 28.92 million mt by the end of 2018, closeto the initial plan of 30 million mt/year.
A total of 16.5 million mt of ESPO crude has been sent via the firstpipeline in 2017, or 110% of its total capacity of 15 million mt/year,according to data from the bureau.
The first Russia-China crude pipeline, or the Mohe-Daqing pipeline withinChina, began operations in January 2011. The pipeline, located in thenortheastern Heilongjiang province, receives ESPO Blend crude from the Mohestation on the China-Russia border and sends it to Daqing. The second parallelpipeline of the same capacity was completed in November last year.
Out of a roughly 20 million mt/year of imports last year by PetroChina,16.5 million mt of ESPO crude was via the first pipeline, with the rest 3.5million mt coming via seaborne cargoes, according to a PetroChina source.
DALIAN TAKES 62.5% OF THE INCREMENT
Of the pipelined ESPO crude in January, PetroChina's 20.5 million mt/yearDalian Petrochemical in northeastern Liaoning province received a total of 1.1million mt.
This was up 600,000 mt, or 120%, from the pipelined 500,000 mt in January2017 -- accounting for 62.5% of the incremental volume of 960,000 mt inJanuary.
The refinery received a total of 800,000 mt of ESPO crude in January2017, with the rest 300,000 mt coming from seaborne cargoes as the firstpipeline was already operating at full capacity.
Besides Dalian Petrochemical, Jilin Petrochemical and HarbinPetrochemical could be the major takers of the incremental volume of the rest360,000 mt, replacing the domestic Daqing crude, the output of which has beendwindling. Those two refineries -- the 10 million mt/year Jilin Petrochemical andthe 5 million mt/year Harbin Petrochemical -- used to process both RussianESPO crude and domestic Daqing crude, with a combined throughputs of around 1million mt/month.
Jilin Petrochemical usually operates at around 90% of its nameplatecapacity, while Harbin operates at around 75%.
Other than Dalian Petrochemical, Jilin Petrochemical and HarbinPetrochemical, Liaoyang Petrochemical also processes 100% of pipelined ESPOcrude.
Liaoyang Petrochemical has received around 550,000 mt/month of RussianESPO via the pipeline, relatively stable from a year earlier, according to asource at the refinery.
China has received a total of 1.1 billion mt until January 31, since thefirst China-Russia pipeline started up in 2011, according to the bureau.
--Edited by Pankti Mehta, firstname.lastname@example.org