Shanghai: China National Offshore Oil Corp (CNOOC) exported its first ever diesel and gasoline cargoes in April and will ship more in May after winning government approval for overseas sales of the transport fuels, Reuters has reported.
The new fuel source is expected to drag on Asia’s diesel margins as other new refining capacity and upgrades have sharply increased regional supplies. The shipments, though, could also relieve tightness in Asian gasoline markets, where demand has been firm, traders said.
CNOOC previously only sold refined products exclusively in the domestic market. But with CNOOC expanding its Huizhou refining complex, and the falling of domestic demand, it started to export jet fuel last year after winning export quotas for the first time.
CNOOC’s total production capacity is about 800,000 barrels per day, which accounts for around 5.7% of China’s total capacity.
