28/10/2010 00:00 AST
Kuwait's crude oil exports to China skyrocketed 85 percent in September from a year earlier to 845,000 tons, equivalent to around 207,000 barrels per day (bpd), the latest government data showed.
Kuwait provided 3.6 percent of China's total crude oil imports, compared with 2.7 percent in the same month of last year and 3.9 percent in August, according to data released from the General Administration of Customs. Kuwait's exports in the first nine months of 2010 totaled 7.50 million tons (202,000 bpd), up 33.1 percent from the same period last year.
China's overall imports of crude oil in September rose 35.4 percent year-on-year to a record high of 5.69 million bpd. Saudi Arabia came back as China's top supplier with its shipments growing 22.4 percent from a year earlier to 1.1 million bpd, followed by Angola with 989,000 bpd, up 39.6 percent. Iran became third, with imports from the country surging 88.8 percent to 598,000 bpd.
China is the world's second-biggest oil consumer after the US. Through its subsidiary Kuwait Petroleum International (KPI), state-run Kuwait Petroleum Corporation (KPC) is in talks with the Chinese side to build a nine billion US dollar refinery and petrochemical complex in south China's Guangdong Province.
The joint project with Sinopec, which could be China's biggest joint venture in its kind, includes a 300,000 bpd refinery, ethylene cracker with the capacity of one million ton per year and a retail network in and around the province. Kuwait has committed to securing 100 percent crude oil supply for the project. KPI said in a statement on Oct.14 that it aims to obtain Chinese government final approval for the construction of the plant by the end of this year.
In related news, KPC has offered 74,000 tons of naphtha for late November loading by tender, bringing its total spot exports next month to about 150,000 tons, traders said on Wednesday.
But the volumes so far are still lower than the 300,000 tons it sold for October loading, they added.
"They should have less going forward, as they managed to term up their barrels for December 2010-November 2011," said a trader.
KPC and other Gulf suppliers namely Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and Tasweeq were unable to get some of their customers to accept high term premiums previously, and that had forced the refiners to sell the cargoes in the spot market.
KPC, however, fixed its latest term price for a 12-month period starting in December at a premium of 12.00 US dollars to $13.00 a ton to Middle East spot quotes, sharply down from the $21.00 a ton premium free on board (FOB) for supplies lifting August 2010-July 2011.
The refiner's tender, which is for a 24,000-ton light grade, and 50,000 tons for full-range naphtha for late November loading, is expected to be awarded on Thursday.
Agencies
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