The policy of liberalizing the right to import crude oil is still under discussion
the policy of liberalizing the right to import crude oil is still under discussion
August 29, 2014
[China paint information] on the evening of August 27, Guanghui energy issued an announcement, saying that its subsidiary Xinjiang Guanghui Petroleum Co., Ltd., with high availability, has obtained the qualification for non-state trade import of crude oil with the approval of the Ministry of Commerce
it is pointed out in the announcement that in 2014, Xinjiang Guanghui Petroleum Co., Ltd. allowed 200000 tons of crude oil to be imported in non-state trade, and it can sell crude oil to refining enterprises in line with industrial policies according to market conditions
the announcement of Guanghui energy means that the monopoly of the right to import crude oil, which has attracted much attention from the market, has finally been broken. Before that, only PetroChina, Sinopec, CNOOC, Sinochem and Zhuhai Zhenrong, which are state-owned enterprises, have the right to import crude oil in China. It has always been difficult for private enterprises to obtain import channels
it is worth noting that Guanghui energy's acquisition of crude oil import right is also one of the breakthroughs in the bundled development of Xinjiang's oil and gas industry. Previously, the national development and Reform Commission issued several opinions of the national development and Reform Commission on supporting the healthy development of industries in Xinjiang, which stipulated that it would support the local processing of Xinjiang asset crude oil, appropriately improve the crude oil processing capacity by using the imported transit crude oil, and realize the intensive and deep processing of petrochemical products in the region as far as possible
"last year, Xinjiang autonomous region reported several companies to the State Council to try to break the monopoly of China's oil companies in upstream development and crude oil import. Xinjiang Guanghui is one of them. Therefore, Guanghui's ability to obtain this license is due to many reasons besides its own conditions." An insider of the petroleum chamber of Commerce of the all China Federation of industry and Commerce told the 21st Century Business Herald
the policy of liberalizing the right to import is still under discussion.
Guanghui energy took the lead in obtaining the right to import crude oil, which may only be the first shot to break the ice of the monopoly of crude oil import
in an interview with 21st Century Business Herald, a number of people in the oil trade industry said that even though the crude oil import right will not be liberalized in a large area, according to the import qualification standards previously issued by the national energy administration, there will be a substantial breakthrough in the second half of this year for large-scale domestic private enterprises to obtain real import qualifications. At present, relevant policies are still under discussion and refinement
"Guanghui energy is just a 'special case'. In March last year, Guanghui reported the materials of crude oil import qualification to the national energy administration. On the one hand, the company's oil and gas fields in Kazakhstan are in urgent need of policy support. On the other hand, it is actively coordinated and promoted by the government of Xinjiang Autonomous Region. However, the license of Guanghui energy does not have much impact on local refining, and the new liberalization policy is mainly to solve the problem of raw materials for local refining." A person in charge of the association who has accompanied subordinate agencies of the State Council to investigate in Shandong and other places for many times told the 21st Century Business Herald
it is worth noting that, as a force that cannot be ignored in the domestic oil market, the shortage of raw materials in local refining enterprises in China, including Shandong and Guangdong, has always been the core focus of local enterprises' repeated admonitions to the competent ministries and commissions over the years
according to the 21st century economic report, at present, as the province with the most concentrated local refining and the largest production capacity in China, it has reached n=100; By the end of 2013, the primary processing capacity of Shandong local refining crude oil was 110million tons/year, the catalytic processing capacity was 43.87 million tons/year, the coking processing capacity was 41.45 million tons/year, and the hydrogenation unit reached 51.6 million tons/year
however, due to the restriction of crude oil import right and quota, the operating rate of Shandong local refinery is only around 30%. For many years, Shandong local refinery has been applying to the Ministry of Commerce for crude oil import right and quota, but no conclusion has been reached
"the industry knows that the signal of opening the crude oil import right has been released, but the specific details have not been released. We have applied for increasing the crude oil quota for many times, but there is still no clear reply." Liuaiying, President of Shandong refining and Chemical Industry Association, said to
as for the future policy space, liuaiying said, "the reform is more and more conducive to the development of private capital, and the conditional increase of crude oil import quota will become a reality."
while the crude oil import right policy is still at a delicate stage, many people in the oil industry said that liberalizing the crude oil import right "affects the whole body" and "there are many details that need to be comprehensively considered when formulating the policy threshold. Although the progress is slow, the general direction of liberalizing the import right will not change."
previously, market participants disclosed to the 21st Century Business Herald that the approval scheme for local refineries to obtain the right to import crude oil has been discussed, but the details still need to be further improved. The measurement standard is mainly based on the direction of "quality, environmental protection and optimization". But the news has not been officially confirmed
Guanghui energy quota is expected to increase
for Guanghui energy, even though it has obtained the crude oil import right from the Ministry of Commerce, for this local energy giant with overseas oil and gas fields, the import quota of 200000 tons seems far from meeting its "ambition"
2009, with the approval of the national development and Reform Commission, Guanghui energy indirectly owned 49% of the equity of Kazakhstan Zhaisang oil and gas block through the acquisition of 49% shares of Kazakhstan TBM company kostron in the establishment of China automobile lightweight non-metallic materials industry alliance. The oil and gas block has more than 1.1 billion tons of crude oil resources, with an annual output of 500000-1million tons of crude oil and 500million cubic meters of natural gas. In addition, the company's Kazakhstan South imasev oil and gas project has a crude oil reserve of 210 million tons. At present, the project has not yet entered the stage of substantive exploitation. Eight years after one unit is put into the device, it is still under exploration
according to the public data, by the end of 2012, 34 wells had been drilled in Zhaisang oil and gas field, of which 29 wells had oil and gas discoveries. 14 wells are natural gas wells (as of february2014, 8 wells have reached full load for gas supply to Jimunai). The other 15 wells are all oil wells with production capacity, but they can not be sold to China without crude oil import qualification. They have not been put into production for the time being, and all of them are in a closed state
with the issuance of a paper approval from the Ministry of Commerce, Guanghui energy's overseas oil and gas production will undoubtedly be at full capacity. An executive of Guanghui Energy said in an interview, "200000 tons is just a starting amount. With the further increase of oil field capacity, the maximum capacity of phase I will reach 3million tons."
at the same time, the executives of Guanghui energy further disclosed that after obtaining the import qualification and quota, the company will mainly transport overseas equity oil back to China. With the further expansion of the import volume, it will also invest in the construction of refineries in the future
"after the import volume reaches a certain scale, we will build our own refinery to process these crude oils." These executives said
in addition, the 21st Century Business Herald also learned that Guanghui energy has not obtained the qualification for crude oil sales and is still actively applying for it. According to the measures for the administration of the crude oil market previously issued by the Ministry of Commerce, those engaged in crude oil business activities in China shall obtain the qualification for crude oil sales and storage