China’s VLSFO output drops in September – JLC

Chinese refiners produced 1.05 million mt of VLSFO in September, according to market intelligence provider JLC.

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China’s daily average VLSFO output in September fell by 1.6% month-on-month to 34,900 mt, according to JLC. The lower VLSFO production can be attributed to “relatively bad” production margins.

PetroChina’s overall production decreased last month, as its Fushun Petrochemical was under maintenance through September, and Gaofu Refinery suspended VLSFO production.

CNOOC’s September VLSFO output was lowered as it was running short of VLSFO export quotas, JLC reported.

Meanwhile, Sinopec’s VLSFO output was stable in September. The company’s Shengli Oilfield resumed production last month, after completing maintenance work, JLC said.

However, on a year-on-year basis, the country’s VLSFO output increased by 5.5% last month. 

China has released a third batch of VLSFO export quotas for 2025 totalling 605,000 mt, all of which were allocated to Sinopec, JLC noted.

By Aparupa Mazumder

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