Argus China Petroleum

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1 News and analysis on oil markets, policy and infrastructure Volume XII, 1 EDITORIAL: Regional gasoline markets are so far unmoved by a potential fall in Chinese exports owing to stricter tax enforcement Mixed aromatics imports b/d Asia-Pacific Mideast Gulf Contents US 4.39 Europe High stocks pressure demand 2 Surplus ends gasoline boom hopes 3 Technology key to tax crackdown 4 Export quotas adjust to new policy 5 Non-state import quota swells 6 Refiners turn to Mideast producers 7 Expansions drive storage growth 8 PdV woes raise Jieyang concerns 9 Company restructuring continues 10 China turns to LNG amid shortages 11 Products Crude data Refinery throughputs Import/export data Yuan for the road The desire to avoid tax has been a far more significant factor underlying imports of mixed aromatics than China s octane deficit. The government has announced plans to make it impossible to buy or sell gasoline without producing a complete invoice chain showing that consumption tax has been paid, from 1 March. And gasoline refining margins shot to nearly $20/bl, their highest since mid Of course, Beijing has tried to stamp out tax evasion in the gasoline market many times before. But, if successful, this poses an existential threat to trading companies and the blending firms that use mixed aromatics to produce gasoline outside the refining system, largely avoiding the Yn2,722/t ($51/bl) tax collected on gasoline produced by refineries. Around 300,000 b/d of gasoline is produced this way. And that has caused the surplus that forces state-owned firms to market their costlier fuel overseas. But there is little panic outside south China, where most blending takes place. The Singapore market is discounting any threat that a crackdown on tax avoidance might choke off Chinese exports gasoline crack spreads fell this month. China s prices are now above those in Singapore, yet its gasoline exports show no sign of letting up. Most of China s mixed aromatics come from Asia-Pacific, where refineries are running flat out. Supply from European refineries is shrinking (see chart). China has long had an octane shortage, partly because its manufacturing sector absorbs so much naphtha. The problem became more acute with the introduction of the China 5 gasoline standard, which cut manganese and sulphur content, further lowering the octane rating of gasoline. But China s resilience to a halt in mixed aromatics imports has vastly improved in the past 18 months. Were China to halt imports of mixed aromatics from March and loadings data suggest this may well happen its new fleet of naphtha reformers should forestall any domestic fuel supply crisis. Refiners have been adding butane-fed alkylation and isomerisation units, too, producing still more high-octane components for the gasoline pool. And local governments are stepping up their scrutiny of ethanol blending in gasoline, which will also mitigate the octane shortfall. China imported around 200,000 b/d of mixed aromatics with an octane rating of around 99 last year. But, over the course of 2017, refiners opened 250,000 b/d of naphtha reforming capacity more than enough to replace those imports. Money matters The devil will, as ever, be in the detail. Blending firms are hunting for loopholes. The central government will need co-operation from local administrations to ensure that the invoice system is strictly enforced and officials are not paid to turn a blind eye. One way of achieving this would be to allow revenue-starved provinces to keep some or all of the consumption tax revenue they collect, rather than remitting it to the centre. Beijing is wary that this would further skew the imbalance between wealthy regions, where car ownership is highest, and poorer ones in which vehicle penetration is relatively slight. But the central government should set aside these concerns. It would be relatively straightforward to redistribute tax revenue from other sources collected centrally. But it is likely to prove impossible to collect consumption taxes unless provincial bureaucrats climb on board.

2 demand Crude output fell back to October levels, which were the lowest since the 2009 financial crisis Shandong crude balance mn bl Shandong bonded crude stocks (LHS) mn b/d 18 Shandong crude imports (RHS) Jan Apr Jul Oct Jan Mixed aromatics imports 000 b/d Oct Jan Apr Jul Oct Jan Apr Jul Oct China apparent demand mn b/d Dec Nov 2017 ±% 17/16 Net imports Crude Products Production Apparent demand Refinery runs High stocks pressure December demand Chinese apparent oil demand fell last month as refiners digested high stocks. But demand growth over the whole year was nearly double that of Apparent oil demand, the sum of crude production and net oil imports, fell to 12.04mn b/d in December from nearly 13mn b/d in the previous month, and averaged 12.7mn b/d for the year. Crude output last month fell back to October levels, which were the lowest since the 2009 financial crisis. Dominant upstream firm PetroChina hopes to revive production this year, but it is unclear how realistic this will be. But demand last year grew by 6.3pc from 2016 levels, with rising imports more than offsetting declining crude production (see table). December crude imports were down by 900,000 b/d with Shandong province, centre of the country s independent refining sector, accounting for 35pc of the decline. Liaoning, where another two large independents, Huajin and Panjin Northern Asphalt, are based, also cut imports in December, mainly from Iraq and Oman. And imports to Fujian on the southeast coast fell by a hefty 230,000 b/d from November levels, as state-owned Sinochem carried out maintenance at its 240,000 b/d Quanzhou refinery. Quanzhou has reopened this month. Iraq accounted for the most precipitous decline in supply month on month, more than halving to 470,000 b/d. This comparison is skewed by record receipts of more than 1mn b/d in the previous month. Kuwaiti deliveries to south China also fell. Guangdong province, dominated by state-controlled Sinopec s refineries, cut imports of heavy sweet grades by around 150,000 b/d month on month, with imports from Angola declining by 100,000 b/d, but increased imports of medium sour crude by 230,000 b/d. Deliveries of Venezuelan crude to Guangdong province rose by 90,000 b/d to nearly 500,000 b/d in December, despite Venezuelan production problems. The concertina effect Crude stocks in bonded storage tank farms around Shandong s coastline, where trading companies hold crude before selling it on to independents, fell from over 17mn bl in October, when many refiners were close to exhausting their import quotas, to 13.8mn bl last month. Tight diesel supplies and a spike in gasoline margins encouraged crude buying last month. But port stocks began to tick higher again this month, reflecting both December s lower imports and a drop in withdrawals by refiners (see graph). Diesel margins are coming down, and gasoline has retreated from its highs. These factors, as well as the closure of many businesses for the lunar new year public holidays from 15 February, are likely to drive crude runs lower next month. And that should cause bonded crude stocks to rebuild, with vessel tracking data indicating a substantial increase in January deliveries. China s net oil product imports rose to 410,000 b/d last month, boosted by record imports of mixed aromatics. Many gasoline blending companies feared that the government would ban the use of untaxed mixed aromatics in gasoline production from 1 January, and maximised imports last month to get blendstocks in ahead of the ban. Imports last reached comparable levels in April last year, when rumours of a ban on mixed aromatics first surfaced. Beijing subsequently confirmed that the new gasoline invoicing system will come into effect from 1 March. South China is now awash with mixed aromatics, traders say. The arrival of so much in December added pressure to gasoline margins and kept exports high. State-run refiners also exported large amounts of ultra-low sulphur diesel last month, boosting domestic prices. Combined gasoline, diesel and jet fuel exports set a fresh record of 1.2mn b/d in December. Page 2 of 46

3 PRODUCTS Independent refinery utilisation rates are starting to fall, in response to weakness in gasoline Shandong arbitrage $/bl Dec DQD differential to Ice Brent $/bl PRD gasoil premium to Shandong PRD gasoline premium to Shandong ESPO Blend DQD Djeno DQD Lula DQD Ice Brent = 0 PRD = Pearl river delta Jan 0.00 Jan Apr Jul Oct Jan Shandong independent refiners may import more this month than in December Surplus dashes gasoline boom hopes China s independent refiners are slashing product prices and cutting runs to maintain their competitiveness with state-owned refining companies. Gasoline refining margins rose strongly this month after the government announced plans for a supposedly foolproof system of logging tax invoices that may make it uneconomic to use imported mixed aromatics as a blendstock. The move is chiefly aimed at gasoline blending companies in south China, but refiners in Shandong fear it will also increase their consumption tax payments. High refinery gasoline stocks soon put a halt to the market rally. Prices for 92 Ron gasoline rose to Yn7,050/t ($85/bl before tax) on 15 January from Yn6,200/t just days earlier, but fell to Yn6,950/t on 22 January. Diesel margins, the stellar performer last year, fell by nearly $12/bl from December to around $14/bl in Shandong this month. Diesel s recent strength encouraged Shandong independents to run hard, producing large amounts of gasoline that have proved harder to sell. And the outlook for fuel margins in Shandong is weaker this year, after China s ministry of commerce (MOC) increased the allowance for so-called non-state crude import rights by 1mn b/d in This is expected to lead to steep growth in imports and refining in the province. But independents are still well supplied with feedstocks, and have cut imports after a surge last year. Shandong imported 2.6mn b/d of crude in December, down from 2.9mn b/d in November. Shandong s independent sector has also being threatened by a rise in crude runs by state-owned refiners this month. Independents slashed product prices in response, leading to an increase in north-to-south product flows (see graph). This, in turn, is forcing state-owned refiners to export their surpluses. CNOOC, which has a 70,000 b/d gasoline export quota, aims to export at least 20,000 b/d of gasoline next month from its 440,000 b/d Huizhou refinery on the south coast. Still going strong But Shandong refiners continue to snap up crude. Imports to the province in January are expected to increase from December. Bids for spot crude cargoes are also higher on a des Qingdao (DQD) basis this month (see graph). March-delivery Brazilian Lula crude traded above competing Congolese heavy sweet Djeno, at $2.50/bl premiums to Ice Brent. And DQD premiums for the independents staple, Russian light sweet ESPO Blend, are trading at $3.40/bl for February-March delivery, the highest since Argus assessments began in January Independent firm CEFC is taking over some Trafigura loadings of ESPO Blend crude this month, as part of a deal in which CEFC acquired a 12.2pc stake in Russian state-controlled Rosneft. CEFC will load two cargoes of ESPO Blend and two Sokol cargoes this month. Djeno DQD premiums have dipped below $2/bl. Strong Chinese demand for west African crude last year helped underpin the strength of Atlantic basin crude prices. But Chinese buyers are now discounting cargoes after a surge in arrivals. Vessel tracking data suggest that 190,000 b/d of Djeno arrived in Shandong in the fourth quarter, and 210,000 b/d may arrive this month. Russian medium sour Urals has become far less attractive on a delivered China basis because of the strength of underlying marker North Sea Dated. Vessel tracking data show no Urals deliveries to Shandong this month and other sour grades filling the gap. Oman crude changed hands this month at 20 /bl below Ice Brent. Around 170,000 b/d of Nemina crude, a sour blend produced at storage tanks in Malaysia specifically for the Shandong market, will arrive this month. And independent refiners Wonfull and Shouguang Luqing have bought Saldanha Blend, a sour grade produced by trading firm Mercuria at storage tanks in South Africa. Page 3 of 46

4 DOWNSTREAM Trading firms fear the government s latest effort to crack down on the use of untaxed blendstocks might succeed Mixed aromatics loadings: Europe-China 000 b/d The new rules are expected to stamp out ghost trades, where invoices are issued for deals that never took place Technology key to SAT tax clampdown China s state administration of taxation (SAT) has launched a new effort to stamp out the use of untaxed blendstocks in the production of gasoline and other fuels. This has alarmed importers of mixed aromatics and pushed gasoline prices higher. Pre-tax spot gasoline prices in south China s Pearl river delta market have risen by $2.10/bl to $79.70/bl following the SAT announcement. Pre-tax spot diesel prices in the same market have risen by 30 /bl to $107.10/bl. The price of mixed aromatics in the south China market has also risen, by $2/bl since the announcement, to Yn5,900/t ($116/bl). Beijing has long sought to end widespread tax evasion in gasoline production, but has not been successful. It was expected to expand the range of products subject to the Yn2,110/t consumption tax on gasoline by including mixed aromatics, based on the HS code used to describe it as it enters Chinese ports. This was considered flawed and an alternative proposal, due to come into effect on 1 March, aims to tighten up all aspects of the invoice chain, making it impossible for untaxed products such as mixed aromatics and light cycle-oil to enter the fuel market. This will affect the invoicing of sales and purchases of gasoline, gasoil, jet fuel, naphtha, solvents, lubricants and fuel oil. Trading firms could previously issue invoices for sales of products they had not yet bought, and then buy the products. From 1 March, they can only sell product once they have logged all the details from their purchase invoices with a new online SAT module operated by the local tax office. That will allow the trading firm to issue a sales invoice. The new platform is like a fictitious tank, one local trader says. The stocks represent the invoices you get from the sellers, and then you can issue your own invoices for cargoes you bought or imported. The previous system could trace and monitor only part of the transaction chain, and was unable to prevent sellers from issuing invoices. This led to the issuance of many fake invoices showing that tax had been paid. Sellers must include details for each cargo for which they want to issue an invoice, including its category and specific code. The total number of each product s invoices to be issued should not exceed the combined volumes that have been confirmed as supplied through the platform based on the documents submitted by the sellers. The system will only recognise invoices that specify the purchased volume and attach tax-paid certificates issued by customs for imports. The new rules are expected to make it almost impossible for trading firms to obtain invoices for gasoline, diesel or fuel oil produced from untaxed products such as mixed aromatics, alkylates, light cycle oil and bitumen. Ghostbusters The move is expected to stamp out ghost trades, where invoices are issued for deals that never took place. This will force companies currently trading blended gasoline to pay the full consumption tax. And it will make it almost impossible for independent refineries to obtain invoices showing that the crude or diluted bitumen they refined was fuel oil, ending a practice where many claimed consumption tax rebates on feedstocks. This has allowed many independents to sell refined products more cheaply than conventional refiners. But the marketing arms of state-owned oil giants have been major beneficiaries too, finding it cheaper to procure third-party fuel supplies than buy from their associated refining arms. Mixed aromatics imports rose to 200,000 b/d in November from 90,000 b/d in October, customs data show. They are expected to have hit 250,000 b/d last month, amid rising Brent prices. Most mixed aromatics trades are indexed to Ice Brent, which settled at $68.82/bl on 9 January, up by $6.62/bl on a month earlier. Page 4 of 46

5 EXPORTS A rise in Chinese exports could put pressure on margins in Asia-Pacific but help avoid a domestic transport fuel glut Oil product export quotas* China: Oil product export quotas* mn b/d Naphtha Gasoline Jet Diesel 000 b/d Diesel Jet Gasoline Naphtha 1Q Q Q Q Q Q Q Q Q *combines third-party processing and general *Combines tolling and general 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 No independent refiners have been granted first-quarter export quotas, either for third-party processing deals or general trade Quotas adjust to new policy direction The government is softening its goal of reining in exports, with the issuance of extra export quotas signalling a rise in overseas sales of clean products this year. China s ministry of commerce (MOC) has issued 1.76mn b/d of export quotas for the first quarter, up by 55pc from January-March last year (see table). Exports of gasoline, diesel and jet will need to average a combined 1mn b/d this year to avert a domestic transport fuel glut, according to a report this month from the research arm of PetroChina s parent company, CNPC. Gasoline accounts for the largest year-on-year increase in quota issuance so far, with oil firms allowed to market an extra 270,000 b/d overseas than they were in the first quarter of last year. PetroChina s trading arm, ChinaOil, is the main recipient of gasoline export quotas, while Sinopec has received the lion s share of the middle distillate allowance 410,000 b/d of jet and 300,000 b/d of diesel. Sinochem and CNOOC, which run large conventional refineries in south China, have been awarded a combined 340,000 b/d of export quotas. The MOC has increased CNOOC s allowance by 90,000 b/d after it opened a new crude unit at its newly expanded 440,000 b/d Huizhou refinery. Almost all of China s gasoline exports remain in Asia-Pacific, so a substantial increase is likely to put pressure on margins in the region. Gasoline crack spreads in Singapore have already weakened sharply this year. Actual exports may fall short of the cap set by the MOC s quotas if proposals to eliminate the production of untaxed gasoline largely from imported mixed aromatics prove effective. This risks tightening domestic gasoline balances, pushing up prices and potentially triggering a drop in exports. But China s naphtha reforming capacity is rising, providing an alternative supply of octane for gasoline. The MOC has raised diesel export quotas to 590,000 b/d compared with 470,000 b/d a year earlier. Asia-Pacific is the major destination for much of China s gasoil exports, but some goes further afield. Beijing tightened road diesel standards in November, helping to push prices for ultra-low sulphur diesel significantly above comparable prices in Singapore. Total diesel exports still hit a record 500,000 b/d that month and were at 480,000 b/d in December, with Bangladesh becoming a key outlet for China s higher-sulphur gasoil surpluses. Corporate viability China s ministry of environmental protection had previously lobbied hard against a pro-export policy for oil, arguing that it exacerbated the country s pollution woes. The MOC and the country s top economic planning body, the NDRC, were more supportive, seeing exports as a means of ensuring the corporate viability of oil companies. Meanwhile, the state-controlled oil giants opposed the issuance of extra crude import allowances for independent refiners, which squeezed their domestic market share and forced their own output into the export markets. No independent refiners have been granted first-quarter export quotas, either for third-party processing deals or general trade, keeping the firms locked out of the export market. But they have been given far greater access to crude import markets than last year. This change in direction marks a waning of industrial sector influence, and the growing clout of local and national administrations. The government used to depend heavily on expert advice from the oil sector in policy formulation and the entrenched local oil giants lobbied hard against granting concessions to the independent refining sector. But President Xi Jinping s administration now appears to expect the oil sector to adapt to the national economic strategy, rather than the other way around. Page 5 of 46

6 SUPPLY Only three Chinese companies have received quotas matching their maximum potential refinery utilisation over the full year Seven companies have been granted quotas covering less than half of their refining capacity Non-state import quota swells China s first award of import quotas this year should boost crude imports and refining activity. The ministry of commerce (MOC) issued 837mn bl of non-state crude import quotas to 34 independent refinery operators in late December. This represents a 77pc increase on the 474mn bl of import quotas it awarded to 21 refiners a year earlier. The MOC based individual quotas on the amount of crude each firm imported in January-October in the previous year. The independent sector s import allowance stands at 2.29mn b/d for 2018 as a whole, equivalent to 67pc of the recipients combined 3.42mn b/d of refining capacity, and 485,000 b/d more than the MOC awarded to the sector in import quotas for Only three companies received quotas matching their maximum potential refinery utilisation over the full year. These are private-sector firms Shengxing Chemical, Dongfang Hualong Industry and Trading, and Qingyishan Petrochemical Science and Technology, which operate a combined capacity of 164,000 b/d in Shandong province. Nine firms with a combined capacity of 862,000 b/d received quotas covering over 90pc of their refining capacity. But the biggest winners, in outright terms, are state-run ChemChina and Norinco Huajin Chemical, and private-sector firms Heze Dongming Petrochemical and Panjin North Asphalt Fuel. These received a combined 744,000 b/d of quotas, representing nearly one-third of the all quotas awarded and equivalent to 80pc of their refining capacity. Seven companies have been granted quotas covering less than half of their refining capacity, either because their actual crude imports last year were below the amount their quota allowed, or because their quotas to refine imported crude fall short of their capacity. Ningxia Baota, which buys crude from Russia s state-controlled Rosneft and imports it by rail to Inner Mongolia, has been granted a 21,600 b/d quota, in line with the cut to its refining quota. The MOC has also granted a total of 49mn bl of crude import quotas to 10 trading companies for 2018, taking the amount of non-state quotas issued so far to 2.43mn b/d, or 85pc of the 2.85mn b/d cap on 2018 issuance. A second batch of quotas is likely to be released later in the year, but that will probably be much smaller the overall 2.85mn b/d cap suggests it may be 420,000 b/d. The MOC is likely to extend import rights to the handful of independents still waiting for final approval from top economic body the NDRC to refine imported crude. At least four firms operating independent refineries in Shandong received preliminary approval for refining quotas, of 132,000 b/d, in October-December. Enter the Dragon Other refineries are due to open later this year. It is uncertain whether they will be awarded crude import quotas, even if they are likely to be granted quotas to refine imports although total quota issuance last year exceeded the MOC s initial guidance by 190,000 b/d. Private-sector Hengli s 400,000 b/d Dalian refinery aims to start testing its crude unit in October, and Dragon Aromatics 1.6mn t/yr paraxylene plant will require condensate when it resumes operations in the second quarter. Dragon Aromatics was previously a key buyer of Iranian South Pars condensate and had crude import quotas for 92,000 b/d, before it was shut down in Hengli is likely to be awarded a quota to refine crude imports ahead of its test runs. But it may buy imports through PetroChina and Sinochem initially both companies have signed agreements with Hengli. State-owned CNPC expects Chinese crude demand this year to be 640,000 b/d higher than last year, at 9mn b/d. Page 6 of 46

7 DOWNSTREAM Less competitive Atlantic basin grades and new refineries designed to use sour crude have boosted Middle Eastern imports China crude imports 000 b/d 250 Azerbaijan Norway 200 Saudi Arabia Utilisation rate (RHS) Kuwait Oman UAE Jun Jul Aug Sep Oct Nov Dec A rise in supply of Russian ESPO Blend crude will compel Petro- China s Dalian refinery to curb purchases of Mideast Gulf crude % Refiners turn to Mideast Gulf producers Mideast Gulf producers fortunes are looking up. More Chinese refineries designed to process sour crude are coming on stream, and a long-delayed strategic petroleum reserve (SPR) site may open later this year. The Mideast Gulf s share of crude supply to China began to recover in the second half of last year, increasing to around 44pc having fallen to multi-year lows of 39pc in June. This revival in demand for grades such as Saudi Arab Medium and Iraqi Basrah Light followed the opening in September of new crude units designed for medium sour grades, as well as a rise in the price of benchmark North Sea Dated that has made Atlantic basin grades less competitive in Asia-Pacific markets. More crude units designed to run sour crude will come on stream over the course of this year. PetroChina aims to open an expansion at its Huabei refinery at Renqiu in Hebei province in the second quarter, enabling it to process Mideast Gulf sour crude. The expansion includes a 100,000 b/d crude unit, a 60,000 b/d (3.4mn t/yr) residue hydrotreater and a 30,000 b/d naphtha reforming unit. The Huabei refinery currently processes local Huabei and Daqing crude and small amounts of light sweet crude from storage. Until mid-2017, Huabei s lack of sophistication prevented it from producing low-sulphur road fuels despite its diet of sweet crude. But PetroChina opened a new S-Zorb hydrotreater at Huabei in June, allowing the plant to desulphurise gasoline to 7ppm for the first time. State-run Sinochem agreed this month to help procure crude for private-sector firm Hengli s Changxing refinery, which is under construction and due to begin test runs in October. The 400,000 b/d facility is designed to run sour grades such as Arab Medium and Qatar Marine. Sinochem also hopes to supply another private-sector refinery, ZPC in Zhejiang province, with Mideast Gulf crude. The 400,000 b/d plant run by Rongsheng aims to begin building stocks in August. Delayed filling Some Middle East crude imports are likely to go towards filling the long-delayed Huizhou SPR this year. State-run CNOOC is readying the 31mn bl site for start-up, possibly as early as June. The site was intended to hold Saudi and Omani crude, as well as west African grades. Infrastructure at Huizhou is expanding to accommodate the expected rise in crude imports. Huizhou port put a 2mn bl very large crude carrier (VLCC) terminal into operation in October. This also serves CNOOC s newly expanded 440,000 b/d Huizhou refinery. Huizhou may receive up to three VLCCs of Saudi crude a month this year, or 200,000 b/d, compared with over 60,000 b/d last year. CNOOC s 200,000 b/d expansion to the Huizhou refinery is mainly running Saudi and Kuwaiti crude. PetroChina also has scope to ramp up throughputs at its new 260,000 b/d plant at Anning (see chart). The refinery took more than 110,000 b/d of Saudi crude in September-December through the cross-myanmar (Burma) pipeline and averaged a utilisation rate of 73pc in December. But a rise in supply of Russian ESPO Blend crude this year will compel Petro- China s flagship 410,000 b/d Dalian refinery to curb purchases of Mideast Gulf grades. PetroChina s main facilities that refine Mideast Gulf crude are the Dalian plant, Anning, its 200,000 b/d Qinzhou plant in southern Guangxi and Dalian Wepec, a 200,000 b/d joint-venture export refinery in northeast Liaoning. Dalian Petrochemical is likely to receive much of the increase in ESPO Blend supply this year because PetroChina has not yet completed upgrades to other refineries in northeast China, forcing it to cut purchases of Mideast Gulf grades. PetroChina raised run rates at Dalian this month. Page 7 of 46

8 midstream China s crude storage additions may be considerably lower than forecast this year, but should still support demand growth Storage capacity expansions Province Location Operator Cap Year mn bl Shandong Weifang Hongrun CPR Shandong Yantai Yantai port CPR Liaoning Jinzhou Jinzhou port port CPR Liaoning Xianren Yinkou port CPR Zhejiang Huangzeshan II Mercuria Guangsha CPR CPR total 57.5 Guangdong Zhanjiang Sinopec H18 SPR Liaoning Jinzhou CNPC SPR Jiangsu Jintan CNPC * SPR Guangdong Huizhou CNOOC SPR SPR total total Shandong Dongying Haixin CPR Shandong Binzhou Shandong Guoyou CPR Liaoning Xianren Yinkou port CPR Liaoning Dalian Dalian oil logistics CPR Shandong Rizhao Dongming port CEFC CPR Xinjiang Shanshan CNPC * SPR Zhoushan (Mamu) Zhejiang Petchem Caofeidian CEFC (Huaxin) Zhejiang CPR Hebei Sinopec SPR Yangpu 2 Hainan CPR total *unconfirmed commercial petroleum reserve strategic petroleum reserve Actual crude stocks are higher than SPR capacity because China leases tank space from state-run and private-sector firms Refinery expansions drive storage growth The opening of new crude storage tanks may provide a significant fillip to crude demand this year. China plans to add 155mn bl of commercial (CPR) and strategic petroleum reserve (SPR) capacity in The country is likely to open around 58mn bl of new commercial crude storage capacity this year, along with 97mn bl of SPR capacity (see table). But storage projects, especially the SPR, are prone to delays, and crude markets are in backwardation, with prompt prices above forward ones. These factors suggest inventory building may be considerably lower than the new tanks nominal absorption rate. Shandong province remains an important focus for storage expansions. Independent sector refiner Hongrun plans to open 32.7mn bl of storage capacity this year. Hongrun plans to use its niche among independents as a storage operator to create locally acceptable crude blends. Among grades it is considering combining are Latin American sour crudes and US light sweet grades. Storage capacity is also growing further north, in Liaoning province, where private-sector company Hengli plans to open a new 400,000 b/d refinery later this year. More than 10mn bl of storage capacity will open in the Dalian Changxing industrial area this year, excluding tanks built as part of Hengli s Changxing refinery project, to serve Liaoning s burgeoning crude trade. The province is home to two large independent refineries, in addition to 1.5mn b/d of refining capacity operated by PetroChina. New refining capacity further down the east coast will also help underpin storage capacity additions this year, with the opening of private-sector firm ZPC s new 400,000 b/d Zhejiang refinery planned for December. ZPC had hoped to begin stockpiling in August, but the company now does not expect to open its 20mn bl Mamu transit crude storage site until October, and construction of all tanks is not expected to be fully completed until October Go-slow strategy The long-delayed Jinzhou SPR in Liaoning, initially due to open by June 2014, will finally open this year, a PetroChina official says. A pipeline will connect the SPR cavern to PetroChina s 180,000 b/d Jinzhou refinery. The Sinopec-run Zhanjiang SPR and PetroChina s Jintan SPR on the east coast are also supposed to open this year, but may be delayed again. Sinopec started filling new commercial storage tanks in Zhanjiang in southern Guangdong province last year, but has not given an update on its progress at the SPR. And the CNOOCrun Huizhou SPR, scheduled to open in 2017, is now due to open this year. China s National Statistics Bureau (NBS) has confirmed that the country s total SPR crude stocks hit 275mn bl (37.73mn t) in mid-2017, up from 243mn bl a year earlier. The 90,000 b/d annual increase in SPR stocks partly reflects the opening of the Sinochem-run 19mn bl Aoshan SPR extension project, which began filling in September China s nominal SPR capacity was 180mn bl in mid-2015, the NBS says. Actual crude stocks are higher than SPR capacity because the government leases tank space from state-run and private-sector firms. China s SPR included as much as 85mn bl of crude held in leased storage tanks by the middle of last year, new NBS data suggest, up from 60mn bl in mid China finished building the 91mn bl phase 1 of its SPR programme in The 166mn bl phase 2 is still under way. But the government has abandoned a December 2020 deadline for its 168mn bl phase 3 SPR project. Phase 3 envisages building sites at Caofeidian in Hebei as well as inland Chongqing. Page 8 of 46

9 DOWNSTREAM The Venezuelan firm s financial problems make it hard to see how it will cover its share of investment in the Jieyang plant Venezuelan crude receipts 000 b/d Jan Apr Jul Oct Upstream executives in Venezuela doubt that struggling PdV can hit its new chief executive s ambitious production targets PdV woes raise questions over Jieyang The massive planned Jieyang refinery on China s south coast is still, officially, a joint venture between CNPC and Venezuelan state-owned PdV. But Mideast Gulf rather than Venezuelan crude will be its base-load crude supply. CNPC s listed subsidiary PetroChina plans to bring the 400,000 b/d Jieyang complex in southern Guangdong province on stream by the end of PdV holds 40pc of the venture, under a 2011 agreement in which the two companies planned to build three refineries. As part of the deal, PdV would send 800,000 b/d of heavy and extra-heavy crude to cover its share of the investment costs, as well as repay historical loans from China. PdV last year sent around 400,000 b/d of crude to China in debt repayment, up from 390,000 b/d in 2016 but Venezuela had promised far more than this. PetroChina sells most of this to independent refiners in Shandong province. Work at Jieyang started in 2012 but stalled in 2014 following a disagreement over crude pricing and investment terms. Jieyang aims to gain Guangdong local government approval by June and resume construction by the middle of this year. But one of the Jieyang crude units will now be designed to process Mideast Gulf crudes most likely from Iran and Saudi Arabia rather than Venezuelan crude. The latter tends to be heavier and sourer than Middle Eastern crude. PetroChina wants to ensure it can process at least 200,000 b/d of Middle Eastern crude in case there are disruptions to Venezuelan supplies. Its new configuration will include a 1.2mn t/yr ethylene plant and a benzene, toluene and xylene plant with a capacity of 2.6mn t/yr. Venezuela produced only 1.5mn b/d of crude in November, PdV chief executive Manuel Quevedo says. This is considerably lower than the 1.837mn b/d figure for November communicated to Opec by the country s energy ministry. Quevedo does not explain the discrepancy, but adds that production rebounded by up to 400,000 b/d to over 1.9mn b/d in December. PdV expects to lose about 588,000 b/d of production from its ageing reservoirs by December. But this will be offset by investments that add 1mn b/d of production, Quevedo says taking national output to about 2.5mn b/d by the end of the year. A senior national guard officer with no prior oil industry experience, Quevedo was appointed in late November following the arrests of then energy minister Eulogio Del Pino and former PdV chief executive Nelson Martinez on corruption charges. Oil-backed debt Upstream executives in Venezuela doubt that PdV can hit Quevedo s ambitious production targets, suggesting that the net increase in output will be smaller than the implied 400,000 b/d. The company s financial liabilities including bonds, bank loans, promissory notes, and debts to goods and services providers, total more than $65bn. This does not include outstanding oil-backed debt of $25bn owed mainly to China and Russian state-controlled Rosneft, according to the energy ministry. The company is in default on interest payments owed on five bonds worth $17.9bn. PdV s financial problems and declining production make it hard to see how it will cover its share of investment in the Jieyang plant. And PetroChina s decision to run at least half of the Yn58bn ($8.8bn) plant on Saudi and Iranian crude will make that task harder still for PdV doubling the time it will take to pay CNPC back. That, in turn, raises questions about whether the Venezuelan firm can afford to remain in the joint venture. PetroChina aims to start testing Jieyang s crude units by October 2021 and its petrochemical units by December Page 9 of 46

10 CORPORATE The petrochemical sector could be included in the next round of major restructuring aimed at making companies more efficient Critics say the government s restructuring strategy effectively bails out zombie firms by tying them to profitable ones Government heralds outcome of restructuring China plans to step up the restructuring of state-owned companies this year by introducing further reforms to make the firms more efficient, state-run assets regulator Sasac says. The government has mooted the idea of including the petrochemical sector in its next round of major restructuring, leading to renewed speculation that state-owned refining and chemicals firm ChemChina and state-owned oil firm Sinochem could be merged or have their petrochemical assets combined. Sinochem has, in the past, denied the possibility of a merger. State-owned Baowu Steel Group became far more profitable last year as a result of a merger, the government says. Baowu was previously two separate firms Baosteel and Wuhan Iron and Steel, the latter being one of the country s most-indebted steel producers. Baowu made a profit of Yn8.66bn ($1.26bn) in January-June 2017, a 100pc increase from a year earlier. ChemChina is also heavily indebted. It completed the $43bn acquisition of Swiss agrichemicals group Syngenta in June last year China s largest overseas deal to date. ChemChina, which received backing from government investment arm China Reform Holdings for the acquisition, is busy refinancing loans used to complete the deal. This month, it arranged a $5.5bn syndicated term loan facility to refinance part of the $12.7bn it used to fund the acquisition. Around seven yangqi companies those supervised by Sasac have merged in the past year, including the country s biggest coal producer Shenhua and power utility Guodian, which were combined to form China Energy Investment in November. The merged entity is worth Yn1.83 trillion ($278bn). It has 175GW of installed thermal power generation capacity, of which 173GW is coal-fired, and nearly 500mn t/yr of coal production. The watchdog reduced the number of yangqis it oversees to 98 from 117 last year through restructuring and mergers. Workforce cuts at yangqis have helped to resolve overcapacity in the steel and coal sectors, removing around 5.95mn t/yr of steel and 25.23mn t/yr of coal capacity last year, Sasac says. China has eliminated over 115mn t/yr of blast furnace-based crude steel capacity since 2016 and shut down 140mn t/yr of induction furnace capacity, while the government set a target to remove 150mn t/yr of coal capacity in Sasac s latest comments indicate more mergers could be on the way. The government will push for further restructuring in the coal, power, petrochemical, equipment manufacturing and communications sectors this year, Sasac chairman Xiao Yaqing said at a recent work summit focused on yangqi reforms. Saving zombies There are suggestions the reforms could extend to companies controlled by provincial governments. Beijing also wants to encourage asset management companies to be set up in fields including coal, steel, marine equipment and environmental protection, in order to streamline resources. Debt-to-asset ratios dropped for yangqis last year as they cut interest-bearing loans, while profits at the firms rose by 15pc to Yn1.4 trillion. Some critics say that Beijing s restructuring strategy effectively bails out zombie firms by tying them to profitable ones. Its decision to merge Macau-based downstream oil firm Nam Kwong and crude trading firm Zhuhai Zhenrong appears to have led to almost no operational changes. Zhenrong ran into difficulty when its main customer, Dragon Aromatics, closed it, formerly, supplied South Pars condensate to Dragon. China s imports of Iranian crude fell to an almost two-year low in December, but supply to Asia-Pacific held steady. Page 10 of 46

11 gas Demand for LNG has up pushed seaborne spot prices, but the increase in supply has helped cool prices in the domestic market China apparent gas demand bn m³ Production LNG imports Pipeline imports Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Government inspection teams are monitoring the gas shortages and work to convert coal heating schemes to run gas China turns to LNG to counter shortages Energy firms are pulling out all the stops to increase LNG imports to south and east China, freeing up pipeline imports and domestic gas to meet demand in the north. LNG imports rose by far more than pipeline imports last month, to a record 5.03mn t, with full-year imports at a record 38.3mn t, up by 46pc from a year earlier. Domestic gas output rose by 2.9pc on the year to 13.6bn m³ in December and reached 147bn m³ over the full year, up by 8.5pc from 2016 compared with 7.8pc growth in the previous year. China s demand for LNG pushed up seaborne spot prices by $0.84/mn Btu to $11.52/mn Btu this month. But the supply increase has helped cool domestic LNG prices, which fell by nearly a quarter from December to Yn5,613.60/t ($17.70/mn Btu), National Bureau of Statistics data suggest. A government crackdown on alleged price gouging by suppliers may have also helped to push domestic prices lower. Top economic planning body the NDRC fined Zhongxin Thermal Electric in Heilongjiang, Haiyan Natural Gas in Zhejiang, Xuanhan Hexin Natural Gas in Sichuan, Hengyuan CNG in Shandong and others for price irregularities, and NDRC anti-trust authorities launched an investigation into 17 companies including PetroChina units last month. The ministry of environmental protection sent out 839 inspection teams in December to monitor gas shortages and the conversion of coal heating schemes to run gas. China s rollout of the coal-to-gas scheme has been blamed for exacerbating seasonal gas shortages in the north. Sinopec has pledged 15.1bn m³ of gas supply from December-February, a 12pc increase on the year, by raising imports and boosting output by 1.1mn m³/d. CNOOC is expected to increase supply by a third to 20bn m³ in northeast cities this winter. PetroChina supplied 102mn m³/d of gas to the Beijing city area through its pipeline network from 1-17 January, up by 12pc from a year earlier. Imports are being used to supply coastal consumers, leaving the big trunk lines to supply inland markets. Sinopec s 295mn m³ working gas capacity Wen96 storage cavern at Zhongyuan in Henan, which serves Shandong and Henan provinces, and its 3mn t/yr Qingdao LNG terminal in Shandong, reached full capacity late last year. This has allowed Sinopec to send 40 LNG trucks north to help alleviate shortages there. And the firm said late last month that it had sent 2.8mn m³/d to PetroChina s West-to-East (WEP) gas pipeline to supply Hubei province. PetroChina bought more LNG from Qatar last month for its 3.5mn t/yr Tangshan LNG terminal in northern Hebei. This is fed into its Shaan-Jing gas pipeline network, which connects WEP to Beijing. Terminal velocity On the east coast, CNOOC s Zhejiang LNG terminal has set aside 1mn m³/d for supply to WEP destinations in the south, enabling WEP to maximise deliveries to Hebei, Henan and Shanxi in the north. PetroChina has added 92.4mn m³ of working gas storage capacity at its east coast Jiangsu Jintan underground gas storage facility, helping bolster supply to its WEP network and allowing it to target southern China so gas in the north can remain there rather than move south. But shortages are still forcing Sinopec to cut gas supplies to its refinery and petrochemical plants by over 6mn m³/d. It has cut supplies to refineries including Yangzi by 3.9mn m³/d since mid-december. And PetroChina has cut gas supply to its 200,000 b/d Pengzhou refinery in Sichuan by at least a third. But the imminent start-up of Sinopec s 3mn t/yr Tianjin LNG receiving terminal, and rising supply from Kazakhstan after the 10bn m³/yr Beineu-Bozoi-Chimkent pipeline opened in October, will help offset a fall in Turkmen deliveries. Turkmen gas supply to China fell to the lowest in a year, in November, before bouncing back last month. Total gas supply may be as much as 4.8bn m³ short of demand this winter. And it will take five years to remedy China s seasonal gas shortage problems, CNPC says. Page 11 of 46

12 Products Diesel spot prices $/bl 25 Dec 1 Jan 8 Jan 15 Jan Shandong independent Yangtze river delta Pearl river delta Northwest China Central China Gasoline spot prices $/bl 25 Dec 1 Jan 8 Jan 15 Jan Shandong independent Yangtze river delta Pearl river delta Northwest China Central China Prices are given in $/bl net of consumption tax and VAT and reflect deals done at selected refineries. For regions, see map below. Diesel assessments track China 5 (Max 10ppm sulphur/min. 46 cetane exc Northwest, which reflects China 4 prices (max. 50ppm sulphur/min. 43 cetane). Gasoline assessments track China 5 (max. 10ppm sulphur / min. 92 Ron / max. 1pc benzene) with the exception of Northwest, which reflect China 4 (max. 50ppm sulphur/min. 93 Ron/max. 2.5pc benzene) deals done in Shaanxi province. Consumption tax = Yn2,110/t (Gasoline); Yn1,411/t (Diesel) Refinery production Refinery runs Gasoline Jetkerosine 000 b/d Diesel Fuel oil LPG Jan 17 11,621 3, , ,200 Feb 10,802 2, , ,115 Mar 11,187 3, , ,191 Apr 10,817 2, , ,165 May 10,978 3, , ,192 Jun 11,213 3, , ,277 Jul 10,714 2, , ,054 Aug 11,096 2, , ,087 Sep 12,007 3,228 1,013 3, ,172 Oct 11,894 3, , ,177 Nov 12,028 3, , ,212 Dec 11,565 3, , Khabarovsk 1,164 China downstream infrastructure K AZA K H S T A N Karamay Kozmino M O N GOLIA Changchun Refinery runs 000b/d Russia Jilin Dushanzi Kazakhstan Urumqi Heilongjiang Mongolia Northwest Tieling KYRGYZSTAN Oct 1,337 Shandong Shenyang Jilin Liaoyang Fushun Krygystan Nov 1,383 Oct 2,446 NORTH Dec 1,332 Liaoning Nov 2,521 Dandong KOREA Jinzhou Xinjiang Inner Mongolia Beijing Dec 2,465 Yalujiang Gansu Tianjin Yingkou Hebei Qinhuangdao Beijing Qinghai Ningxia Shanxi Shandong Renqiu Dalian Henan Yangtze delta Jiangsu Shijiazhuang Tianjin SOUTH Shaanxi Tibet Taiyuan Central Oct 1,898 Cangzhou KOREA Anhui Hejian Hubei Nepal Oct Sichuan 904 Nov 1,852 Linyi Jingbian Nov 898 Dec 1,862 Handan Qingdao Hunan Jiangxi CHI N A Yan an Anyang Zibo Fujian Jinan Shandong Dec 913 Rizhao India Bangladesh Puyang Northwest Dongming Yunnan Guangxi Guangdong Pearl Lanzhou Kaifeng Yangtze Oct 2,106 Luoyang Xinyi Central Myanmar Hong Kong Xianyang Zhengzhou Suzhou Huai an Pearl Laos Vietnam Nov 2,053 Xi an Bengbu Yancheng Thailand Hainan Dec 1,731 Fuyang Taizhou Weigang Huai nan Suzhou Shanghai Zhumadian Chuzhou Hefei Nanjing Ma anshan Pengzhou Wanzhou Wuhan Anqing Chengdu Ningbo Jianyang Jingmen Zhenhai Neijiang Jiujiang Leshan Yueyang Nanchang Chongqing Quzhou Changsha Shangrao Rongchanga Wenzhou Jiangjin Tongzi Xiangtan ZhuzhouZhangshu Zhaotong Zunyi Loudi Fuzhou Lijiang Pingxiang Tongren Ganzhou Guiyang Quanzhou Quanzhou Chenzhou Product pipeline Dali Kunming Xiamen Xiamen Baoshan Guilin Meizhou Product pipeline under construction Guangzhou Chuxiong Liuzhou Yuxi Planned product pipeline Ruili T A I W A N Lincang YangweiBaise Pearl river Huizhou Oil port M YANMAR Nanning Zhongshan ( B URMA) WenshanGuangxi Shenzhen Maoming Key refineries Zhuhai Qinzhou Planned refineries VIETNAM Zhanjiang Beihai Rail terminal LAOS Hainan Ramree N E P A L Mekong river Yellow river Yangtze river Argus Page 12 of 46

13 Product prices China and Singapore refining margins $/bl Gasoline crack spread Diesel crack spread 321 crack spread -5 Jan Apr Jul Oct Jan Apr Jul Oct Jan Gasoline and diesel marketing margins $/bl Gasoline spot price differential to ex refinery Diesel spot price differential to ex refinery Gasoline and diesel retail margins $/bl Guangdong spot gasoline price differential to retail Guangdong spot diesel price differential to retail China basket price month 1 vs 2 $/bl Month 2 = 0 China basket = reference price used by NDRC to set retail price caps calculated as 40pc Ice Brent, 10pc Nymex WTI and 50pc Dubai plus freight to China Oct 30 Nov 31 Dec Chinese retail price caps Yn/t 90 Ron gasoline^ 10ppm diesel^ 22 Jan 22 Dec 22 Jan 22 Dec Northeast: Heilongjiang 8,115 7,340 7,115 6,370 Jilin 8,115 7,340 7,115 6,370 Liaoning 8,115 7,340 7,115 6,370 North: Beijing 8,150 7,545 7,150 6,565 Tianjin 8,115 7,510 7,115 6,530 Hebei 8,115 7,340 7,115 6,370 Shanxi 8,185 7,410 7,170 6,425 Hohhot 8,130 7,355 7,130 6,385 East: Shanghai 8,130 7,525 7,120 6,535 Jiangsu 8,170 7,395 7,155 6,410 Zhejiang 8,170 7,395 7,170 6,425 Shandong 8,125 7,350 7,125 6,380 Central: Hubei 8,140 7,365 7,140 6,395 Hunan 8,180 7,405 7,200 6,455 Henan 8,135 7,360 7,135 6,390 Anhui 8,165 7,390 7,165 6,420 Jiangxi 8,170 7,395 7,175 6,430 South: Guangdong 8,195 7,590 7,185 6,600 Fujian 8,190 7,415 7,180 6,435 Hainan 8,260 7,485 7,250 6,505 Guangxi 8,260 7,485 7,250 6,505 Southwest: Chongqing 8,330 7,555 7,325 6,580 Chengdu, Sichuan* 8,335 7,560 7,350 6,605 Chongqing, Sichuan* 8,330 7,555 7,325 6,580 Guiyang, Guizhou* 8,295 7,520 7,275 6,530 Kunming, Yunnan* 8,325 7,550 7,305 6,560 Northwest: Xinjiang 7,895 7,120 7,010 6,265 Xi'an, Shaanxi* 8,100 7,495 7,125 6,540 Xining, Qinghai* 8,080 7,305 7,160 6,415 Gansu 8,100 7,325 7,135 6,390 Ningxia 8,120 7,345 7,115 6,370 *Prices are for the listed city, not the province. NDRC guidelines stipulate that the highest wholesale prices must be at least Yn400/t below maximum retail prices Beijing has stricter vehicle emissions standards. Prices listed are for China 4 ^Prices apply to fuel compatible with China 4 vehicle emissions standards NDRC Shandong independent/official price comparison $/bl 17 Nov 24 Nov 1 Dec 8 Dec 15 Dec Gasoline, 90 Ron Lijin* Ex-refinery prices ± NDRC wholesale cap % of wholesale cap Dongming Ex-refinery prices ± NDRC wholesale cap % of wholesale cap Diesel, 10ppm Lijin* Ex-refinery prices ± NDRC wholesale cap % of wholesale cap Dongming Ex-refinery prices ± NDRC wholesale cap % of wholesale cap Crude price Shengli** Ex-field prices Independent differential to NDRC price caps assumes a Yn400/t wholesale discount to retail cap *The 70,000 b/d Lijin refinery runs a blend of imported straight-run fuel oil and domestic crude, producing China 5 standard gasoline and diesel since January 2016 The 160,000 b/d Dongming refinery produces China 4 and 5 standard gasoline, but mainly China 4 road diesel **Sinopec produces around 540,000 b/d of heavy sour Shengli crude in Shandong. Since November 2015, it has set prices retrospectively. Page 13 of 46

14 Product MArkets Chinese oil products imports and exports Imports Nov ± Nov/Oct YTD ± YTD 17/16 Exports Net imports* Oct net imports* 000t % Imports Exports Net imports* YTD 16 net* 000t 000t % Gasoline 0.0 1, , , , , Naphtha , , , Jet-kerosine , , , , , , Gasoil 1.1 2, , , , , , , Fuel oil 1, , , , , , LPG 1, , , , , , , , Asphalt , , , Petroleum coke , , , , , Lubricant Base oil , , , Wax Other products Total products 5, , , , , , , Crude 37, , , , , , , , , Total petroleum 42, , , , , , , , , , *minus figures indicate net exports Chinese oil products imports and exports Imports Dec ± Dec/Nov YTD ± YTD 17/16 Exports Net imports* Nov net imports* 000t % Imports Exports Net imports* YTD 16 net* 000t 000t % Gasoline 0.0 1, , , , , , , Naphtha , , , Jet-kerosine , , , , , , , Gasoil 3.8 1, , , , , , , Fuel oil 1, , , , , , LPG 1, , , , , , , , Asphalt , , , Petroleum coke , , , , , Lubricant Base oil , , , Wax Other products Total products 5, , , , , , , Crude 33, , , , , , , , , Total petroleum 38, , , , , , , , , , *minus figures indicate net exports Product imports, exports mn t 8 Exports Imports Net exports/imports Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct Gasoil imports, exports mn t Exports Imports Net exports/imports Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct Page 14 of 46

15 Product markets Independent crude import quotas Refinery Gasoline exports and margins $/bl Gasoline export margins with 1 month lag (LHS) Net gasoline exports (RHS) Diesel exports and margins $/bl Diesel export margins with 1 month lag (LHS) Net diesel exports (RHS) Quota to refine -25 *three-month moving average Licence to import 000 b/d CDU cap. Huajin Chemical ChemChina Dragon Aromatics Heze Dongming Panjin North Asphalt Fuel Shandong Kenli Shandong Lijin Hongrun Shandong Yatong Ningxia Baota Shandong Wonfull (Huifeng) Shandong Tianhong Chemical Shouguang Luqing Shandong Chambroad Dongying Qirun Chemical Shaanxi Yanchang Petroleum Shandong Haiyou Shandong Hengyuan Petrochemical Shandong Wudi Xinyue Shandong Qingyuan Petrochemical Henan Fengli Petrochemical Shandong Jincheng Petrochemical Hebei Xinhai Chemical Landbridge Petrochemical # Hubei Jin'ao Science & Technology Chemical Shenchi Petrochemical Zhonghai Fine Chemical Shandong Haike Ruilin Chemical Shandong Dongfang Hualong Industry & Trade# Shandong Shengxing Chemical# Shandong Qicheng Petrochemical # Dalian Jinyuan Petrochemical # Shandong Yuhuang Shengshi Chemical# Zibo Xintai Petrochemical # Shandong Qingyishan Petchem Science & Technology# Shandong Fuyu Chemical # Hualian Petrochemical# Shandong Haike Chemical # Jiangsu Xinhai Petrochemical # Total 2,522 2,291 3,744 *granted licence to import crude #won preliminary approval to refine crude imports 000 b/d b/d Product prices* (week ending) China HSFO (cracked) fob south China barges (STS) Product prices Singapore refining margins $/bl Dec 5 Jan 12 Jan 19 Jan Yuan/t 3,438 3,425 3,455 3,575 $/t (premium to Mops HSFO 180) M-100 (straight-run) c+f south China M-100 (straight-run) c+f east China HSFO 180 c+f south China (month 1) HSFO 180 c+f south China (month 2) HSFO 180 c+f south China (month 3) South Korea/Japan $/t HSFO 180 fob South Korea Naphtha c+f Japan Singapore $/bl Gasoil 0.5% Gasoil 0.005% Gasoil 0.005% diff to MOPS Gasoil 0.001% Gasoil 0.001% diff to MOPS Gasoline 92R Naphtha Jet-kerosine HSFO 180 ($/t) $1 = Yn Jan *Average weekly prices Aug 17 Sep Oct Nov Dec Gasoline Naphtha Jet Diesel Heating oil Fuel oil $/bl Jan 18* Singapore Gasoil 0.005% Gasoil 0.005% diff to MOPS Gasoil 0.001% Gasoil 0.001% diff to MOPS Gasoline 92R * month to date five-day rolling averages $/t Page 15 of 46

16 Products Shandong netbacks $/bl Independent GPW refining margin (LHS) Independent utilisation rate (RHS) % Sep Nov Jan Mar May Jul Sep Nov Jan Shandong margins weaken Shandong independent sector refinery utilisation rates have remained high this month, despite volatile refining margins. The rise in crude prices prompted top economic planning body the NDRC to increase pump prices on 12 January. But diesel prices continued their retreat from highs of close to $100/bl in November to $84/bl this month, eroding margins. A looming crackdown on sales of untaxed gasoline boosted spot prices and margins. But the rally petered out, and prices in Shandong fell to deep discounts to gasoline in south and east China, opening an arbitrage for product to flow south. Retailers have proved reluctant to add to stocks, expecting prices to fall further before the lunar new year holidays in mid-february. Crude stocks in bonded tanks at Shandong ports fell in December, but began to build this month. The weighted average utilisation rate of independents surveyed by Argus remained at 84pc this month, equivalent to 1.03mn b/d. Gross product worth refining margins for a range of crude grades favoured by independents fell to $12.40/ bl from $15.65/bl last month. Independent Haiyou Petrochemical completed maintenance at its 70,000 b/d refinery in Rizhao, and restarted it late this month. The firm completed maintenance at a 12,000 b/d catalytic cracking unit in mid-december. Dongying-based refiner Shangneng shut its 40,000 b/d plant in late-december and plans to reopen it at the end of January. China Overseas Energy Science and Technology shut its 46,000 b/d refinery at Rizhao for maintenance and plans to reopen it in March. Crude China CDU shutdowns mn b/d 1.4 Sinopec PetroChina Other Jan Apr Jul Oct Jan Oman vs Cabinda dated $/bl 70 Oman month 1 Cabinda dated Jul Aug Sep Oct Nov Dec Supply fears support prices Atlantic basin benchmark North Sea Dated rose by $5.71/bl between 19 December and 17 January, to reach $69.10/bl. Mideast Gulf benchmark Dubai rose by $4.92/ bl to $66.33/bl. Venezuelan production collapsed last month. Opec members compliance with production cuts remained above 100pc, while the North Sea Forties pipeline outage crimped non-opec supply. Chinese demand for west African crude remained firm. Chinese refiners took 1.36mn b/d of west African crude in December, up by 140,000 b/d from the previous month. Strong diesel prices have underpinned demand for distillate-rich west African grades. Angolan crudes accounted for nearly three-quarters of Chinese refiners west African purchases. But volumes destined for China s independent refiners were down at 220,000 b/d, from the 330,000 b/d that went to the sector in October- November. Many independent refiners curbed their purchases last month after using up most of their import quotas. Demand for Dated-linked west African crude may ease, following a widening of the Brent-Dubai spread. The Brent-Dubai EFS, or the premium of Ice Brent to Dubai swaps, hit a 19-month high of $3.64/bl on 15 January. Angolan grades such as Cabinda have become expensive relative to Mideast Gulf Oman. China continued to buy Russian ESPO Blend crude. At least 380,000 b/d is going to China. In December, China took about 500,000 b/d of ESPO Blend from Kozmino in Russia s far east, its highest amount in five months. Chinese demand has helped push ESPO Blend premiums to Dubai to $4.70/bl, their highest since March last year. Page 16 of 46

17 Crude markets Crude prices* (week ending) $/bl 29 Dec 5 Jan 12 Jan 19 Jan Formula pricing $/bl Oct 17 Nov Dec Jan 18 Feb Mideast Gulf (Singapore close) Dubai (month 1) Dubai (month 2) Dubai (month 3) Oman (month 1) Murban (Abu Dhabi) Qatar Marine Brent-Dubai EFS Asia-Pacific (Singapore close) Minas (Indonesia) Duri (Indonesia) Tapis (Malaysia) NW Shelf (Australia) West Africa (London close) Cabinda Blend (Angola) Girassol (Angola) Hungo (Angola) Bonny Light (Nigeria) Russia/Mediterranean (London close) Urals (Russia, cif northwest Europe) ESPO Blend (fob Kozmino) Saharan Blend (Algeria) North Sea Dated (Brent) Ice Brent month Nymex WTI (month 1) *average weekly price Crude prices $/bl Contract month Oct 17 Nov Dec Jan 18 Feb Mar* Ice Brent Dubai Murban (Abu Dhabi) Sep 17 Oct Nov Dec Jan 18 Feb* Nymex WTI futures WCS Houston cfr China WTI Houston cfr China Calendar month Aug 17 Sep Oct Nov Dec Jan 18* Forties Djeno (Congo) * month to date Saudi Arabia fob Ras Tanura to Asia-Pacific: average Oman/Dubai Arab Super Light Arab Light Arab Medium Arab Heavy Iran: fob Kharg Island: average Oman/Dubai Iranian Light Iranian Heavy Iraq to Asia-Pacific: average Oman/Dubai Basrah Light (Basrah oil terminal) Kuwait: average Oman/Dubai Kuwait Yemen: dated Brent Masila na na na na na Nigeria: dated Brent Bonny Light Official selling prices $/bl Jul 17 Aug Sep Oct Nov Dec Middle East Abu Dhabi Murban Oman Oman MOG Asia-Pacific Indonesia Minas Duri Malaysia Tapis Opec basket Japanese Crude Cocktail na na Dubai-Brent EFs $/bl Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Page 17 of 46

18 Crude imports/exports China s crude imports by origin and exports by destination Imports by origin Nov ± Oct YTD ± YTD 17/16 000t 000 b/d ± 000 b/d ±% 000t 000 b/d ± 000 b/d ±% Middle East 16, , , , Saudi Arabia 4, , , , Iran 2, , Oman 2, , Yemen na 1, UAE , Kuwait 2, , Iraq 4, , , Qatar Africa 6, , , , Angola 3, , , Sudan na Congo (Brazzaville) 1, , Congo (DRC) Equatorial Guinea na 2, Libya na 3, Nigeria 1, Algeria na Chad Egypt , Gabon , Cameroon Ghana , South Sudan , FSU/Europe 6, , , , Russia 5, , , , Kazakhstan , Norway , UK , Azerbaijan 1, Americas 5, , , , Venezuela 1, , Brazil 1, , Argentina , Ecuador , Colombia 1, , Canada US 1, , ,307.5 Mexico , Asia-Pacific 1, , Indonesia , Vietnam , Thailand Brunei Malaysia , Australia na 2, Mongolia Total imports 37, , , , , of which: Opec* 19, , , , Opec* % 53.2 (Nov) 57 (Oct) 54.6 (YTD 17) 57 (YTD 16) Middle East % 44.9 (Nov) 45.4 (Oct) 43.5 (YTD 17) 48.2 (YTD 16) Africa % 18.6 (Nov) 19.7 (Oct) 19.7 (YTD 17) 17.9 (YTD 16) FSU % 15.1 (Nov) 16 (Oct) 17.7 (YTD 17) 16.5 (YTD 16) Exports by destination 000t 000 b/d ± 000 b/d ±% 000t 000 b/d ± 000 b/d ±% South Korea 1, Indonesia na na US Japan , Singapore Malaysia na Thailand na Philippines na na Hong Kong na na Total exports , Net crude imports 36, , , , , Crude production 15, , , , Apparent crude demand 51, , , , , Refinery runs 49, , , , Unaccounted for crude 2, , , , Crude import dependency % 70.1 (Nov) 65.8 (Oct) 68.8 (YTD 17) 65.5 (YTD 16) Net products imports 1, , , Net petroleum imports 37, , , , , , Apparent petroleum demand 52, , , , , Petroleum import dependency % 71 (Nov) 66.6 (Oct) 70.4 (YTD 17) 66.8 (YTD 16) *includes Ecuador from Dec '07 and Angola from Jan '07. Back data adjusted to include Ecuador and Angola Apparent crude demand minus refinery runs. This includes storage gains and heavy crude run in specialist 'asphalt factories' which are not officially regarded as refineries Imports and exports data from China General Administration of Customs Page 18 of 46

19 Crude imports/exports China s crude imports by origin and exports by destination Imports by origin Dec ± Nov YTD ± YTD 17/16 000t 000 b/d ± 000 b/d ±% 000t 000 b/d ± 000 b/d ±% Middle East 14, , , , Saudi Arabia 4, , , , Iran 2, , Oman 2, , Yemen , UAE , Kuwait 1, , Iraq 1, , Qatar na 1, Africa 5, , , , Angola 3, , , Sudan Congo (Brazzaville) , Congo (DRC) Equatorial Guinea , Libya , Nigeria 1, Algeria na Chad Egypt , Gabon , South Africa na Cameroon Ghana , South Sudan , FSU/Europe 6, , , , Russia 5, , , , Kazakhstan , Norway na 1, UK , Azerbaijan 1, Americas 6, , , , Venezuela 2, , Brazil 2, , Argentina na 1, Ecuador na 1, Colombia 1, , Canada US , ,480.4 Mexico na 1, Asia-Pacific , Indonesia , Vietnam , Thailand Brunei Malaysia , Australia , Mongolia , Total imports 33, , , , , of which: Opec* 17, , , , Opec* % 50.8 (Dec) 53.2 (Nov) 54.3 (YTD 17) 56.4 (YTD 16) Middle East % 42.2 (Dec) 44.9 (Nov) 43.4 (YTD 17) 48 (YTD 16) Africa % 17.7 (Dec) 18.6 (Nov) 19.5 (YTD 17) 17.7 (YTD 16) FSU % 15.6 (Dec) 15.1 (Nov) 17.8 (YTD 17) 16.6 (YTD 16) Exports by destination 000t 000 b/d ± 000 b/d ±% 000t 000 b/d ± 000 b/d ±% South Korea 1, Indonesia na US Japan , Singapore Malaysia na na Thailand Philippines na Hong Kong na Total exports , Net crude imports 33, , , , Crude production 15, , , , Apparent crude demand 49, , , , Refinery runs 49, , , , Unaccounted for crude , Crude import dependency % 68.1 (Dec) 70.1 (Nov) 68.8 (YTD 17) 65.8 (YTD 16) Net products imports 1, , , Net petroleum imports 34, , , , Apparent petroleum demand 50, , , , Petroleum import dependency % 69.2 (Dec) 70.9 (Nov) 70.3 (YTD 17) 67.1 (YTD 16) *includes Ecuador from Dec '07 and Angola from Jan '07. Back data adjusted to include Ecuador and Angola Apparent crude demand minus refinery runs. This includes storage gains and heavy crude run in specialist 'asphalt factories' which are not officially regarded as refineries Imports and exports data from China General Administration of Customs Page 19 of 46

20 Crude imports in detail Chinese crude imports and exports in detail, Nov Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Northeast 1, , , , Jinzhou, Liaoning Russia Shenyang, Liaoning Gabon Shenyang, Liaoning Libya Shenyang, Liaoning Panjin, Liaoning Iraq Dalian, Liaoning Oman Dalian, Liaoning Russia Dalian, Liaoning Shenyang, Liaoning Brazil Dalian, Liaoning Malaysia Dalian, Liaoning Yingkou, Liaoning Iraq Dalian, Liaoning Oman Dalian, Liaoning Venezuela Dalian, Liaoning Brazil Dalian, Liaoning US Dalian, Liaoning Dalian Others, Liaoning Russia Dalian, Liaoning UAE Dalian, Liaoning Dalian Eco/Tech/ Dev. Zone, Liaoning , Iran Dalian, Liaoning Iraq Dalian, Liaoning Oman Dalian, Liaoning Russia Dalian, Liaoning Saudi Arabia Dalian, Liaoning UAE Dalian, Liaoning US Dalian, Liaoning Shenyang Others, Liaoning Malaysia Dalian, Liaoning Daqing Others, Heilongjiang , Mongolia Hohhot, Inner Mongolia Manzhouli, Inner Mongolia Russia Harbin, Heilongjiang 1, Huludao, Liaoning Libya Shenyang, Liaoning Northwest , Urumqi High-tech Industrial zone , Russia Urumqi, Xinjiang Kazakhstan Urumqi, Xinjiang Lanzhou Others, Gansu Russia Lanzhou, Gansu Yinchuan, Ningxia Russia Yinchuan, Ningxia North , , Cangzhou, Hebei Russia Qingdao, Shandong Beijing (Fangshan) Saudi Arabia Tianjin, Tianjin Brazil Tianjin, Tianjin US Tianjin, Tianjin Tangshan, Hebei Iran Shijiazhuang, Hebei Iraq Shijiazhuang, Hebei Kuwait Shijiazhuang, Hebei Shijiazhuang Others, Hebei Kuwait Shijiazhuang, Hebei Oman Tianjin, Tianjin Brazil Tianjin, Tianjin US Tianjin, Tianjin Tianjin (Binhai New Area (Dagang)) Iraq Shijiazhuang, Hebei Kuwait Shijiazhuang, Hebei Saudi Arabia Shijiazhuang, Hebei Colombia Shijiazhuang, Hebei Beijing (Chaoyang District) Saudi Arabia Tianjin, Tianjin Tianjin (Tianjin Others) Brazil Tianjin, Tianjin Page 20 of 46

21 Crude imports in detail Chinese crude imports and exports in detail, Nov Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl East 4, , , , Binzhou, Shandong Angola Qingdao, Shandong Venezuela Qingdao, Shandong Equatorial Guinea Jinan, Shandong Dongying, Shandong , Angola Jinan, Shandong Mongolia Hohhot, Inner Mongolia Russia Qingdao, Shandong Brazil Jinan, Shandong Malaysia Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Jinan, Shandong Equatorial Guinea Jinan, Shandong Zibo, Shandong Angola Jinan, Shandong Russia Jinan, Shandong Dezhou, Shandong Brazil Tianjin, Tianjin Heze, Shandong Oman Qingdao, Shandong UAE Tianjin, Tianjin Colombia Qingdao, Shandong Brazil Qingdao, Shandong Zhoushan, Zhejiang Indonesia Hangzhou, Zhejiang Ningbo Others, Zhejiang , Angola Ningbo, Zhejiang Iran Ningbo, Zhejiang Iraq Ningbo, Zhejiang Kuwait Ningbo, Zhejiang Oman Ningbo, Zhejiang Saudi Arabia Ningbo, Zhejiang Venezuela Ningbo, Zhejiang Brazil Ningbo, Zhejiang South Sudan Ningbo, Zhejiang Egypt Ningbo, Zhejiang Sudan Ningbo, Zhejiang Qingdao Eco. and Tech. Dev.Zone, Shandong , Angola Qingdao, Shandong Iran Qingdao, Shandong Iraq Qingdao, Shandong Kuwait Qingdao, Shandong Russia Qingdao, Shandong Colombia Qingdao, Shandong US Qingdao, Shandong Qingdao Others, Shandong , Angola Qingdao, Shandong Iran Qingdao, Shandong Kuwait Qingdao, Shandong Saudi Arabia Qingdao, Shandong Venezuela Qingdao, Shandong Colombia Qingdao, Shandong US Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Yemen Qingdao, Shandong Rizhao, Shandong , , Angola Qingdao, Shandong Iran Qingdao, Shandong Oman Qingdao, Shandong Russia Qingdao, Shandong Saudi Arabia Qingdao, Shandong Venezuela Qingdao, Shandong Brazil Qingdao, Shandong UK Qingdao, Shandong US Qingdao, Shandong Argentina Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Yemen Qingdao, Shandong Shanghai (Pudong New Area) Page 21 of 46

22 Crude imports in detail Chinese crude imports and exports in detail, Nov Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Angola Ningbo, Zhejiang Hangzhou, Zhejiang Iraq Hangzhou, Zhejiang Colombia Hangzhou, Zhejiang Vietnam Hangzhou, Zhejiang Libya Hangzhou, Zhejiang Weifang Other, Shandong , Angola Jinan, Shandong Kuwait Jinan, Shandong Oman Jinan, Shandong Russia Jinan, Shandong UK Jinan, Shandong Cameroon Jinan, Shandong Congo (Brazzaville) Jinan, Shandong Equatorial Guinea Jinan, Shandong Yantai Others, Shandong Indonesia Qingdao, Shandong Longkou, Shandong Oman Qingdao, Shandong Russia Qingdao, Shandong Malaysia Qingdao, Shandong Indonesia Qingdao, Shandong Nanjing Others, Jiangsu , Iran Ningbo, Zhejiang Iraq Ningbo, Zhejiang Hangzhou, Zhejiang Kuwait Ningbo, Zhejiang Oman Ningbo, Zhejiang Hangzhou, Zhejiang Saudi Arabia Ningbo, Zhejiang Hangzhou, Zhejiang Colombia Hangzhou, Zhejiang Shanghai (Jinshan) , Iraq Hangzhou, Zhejiang Kuwait Ningbo, Zhejiang Oman Ningbo, Zhejiang Hangzhou, Zhejiang Saudi Arabia Ningbo, Zhejiang Hangzhou, Zhejiang Colombia Hangzhou, Zhejiang Shanghai (Pudong Others) Kuwait Ningbo, Zhejiang Brazil Ningbo, Zhejiang Nanjing Pukou high-tech export Iraq Hangzhou, Zhejiang Saudi Arabia Hangzhou, Zhejiang Colombia Hangzhou, Zhejiang US Hangzhou, Zhejiang Ningbo Economic/Technological Angola Ningbo, Zhejiang Xuzhou, Jiangsu UK Tianjin, Tianjin Huaian, Jiangsu Vietnam Hangzhou, Zhejiang South 1, , , , Beihai, Guangxi Colombia Zhanjiang, Guangdong Maoming, Guangdong , Angola Zhanjiang, Guangdong Iran Zhanjiang, Guangdong Kuwait Zhanjiang, Guangdong Oman Zhanjiang, Guangdong Saudi Arabia Zhanjiang, Guangdong Egypt Zhanjiang, Guangdong Congo (Brazzaville) Zhanjiang, Guangdong Libya Zhanjiang, Guangdong Qinzhou, Guangxi Kuwait Nanning, Guangxi Saudi Arabia Nanning, Guangxi UAE Nanning, Guangxi Page 22 of 46

23 Crude imports in detail Chinese crude imports and exports in detail, Nov Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Guangzhou Others, Guangdong , Angola Huangpu, Guangdong Shenzhen, Guangdong Iraq Huangpu, Guangdong Shenzhen, Guangdong Saudi Arabia Huangpu, Guangdong Shenzhen, Guangdong South Sudan Shenzhen, Guangdong US Shenzhen, Guangdong Huizhou Others, Guangdong , Angola Shenzhen, Guangdong Kuwait Shenzhen, Guangdong Russia Shenzhen, Guangdong Saudi Arabia Shenzhen, Guangdong Australia Shenzhen, Guangdong Zhangjiang, Guangdong UAE Zhanjiang, Guangdong Vietnam Zhanjiang, Guangdong Ghana Zhanjiang, Guangdong US Zhanjiang, Guangdong Indonesia Zhanjiang, Guangdong Quanzhou, Fujian , Iraq Xiamen, Fujian Oman Xiamen, Fujian Saudi Arabia Xiamen, Fujian Foshan, Guangdong Venezuela Ningbo, Zhejiang Central Yueyang, Hunan Vietnam Hangzhou, Zhejiang Egypt Hangzhou, Zhejiang Libya Hangzhou, Zhejiang Puyang, Henan Angola Qingdao, Shandong Yan'an, Shaanxi Russia Qingdao, Shandong Malaysia Qingdao, Shandong Jingzhou, Hubei Venezuela Qingdao, Shandong Other Various Various small cargoes Southwest Kunming Others, Yunnan Kuwait Kunming, Yunnan Saudi Arabia Kunming, Yunnan UAE Kunming, Yunnan Total imports 9, , , , Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t $/bl Northeast Dalian Eco. / Tech.Dev. Zone, Liaoning Japan Dalian,Liaoning East Zhoushan, Zhejiang Indonesia Hangzhou,Zhejiang Japan Hangzhou,Zhejiang South Yangpu Eco. Dev. Zone, Hainan Thailand Haikou,Hainan Hong Kong Haikou,Hainan Philippines Haikou,Hainan Total exports Net imports 8, ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Page 23 of 46

24 Crude imports in detail Chinese crude imports and exports in detail, Dec Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Northeast 1, , , , Jinzhou, Liaoning Russia Shenyang, Liaoning Libya Shenyang, Liaoning Panjin, Liaoning Russia Dalian, Liaoning Saudi Arabia Dalian, Liaoning UAE Dalian, Liaoning Brazil Dalian, Liaoning US Dalian, Liaoning Yingkou, Liaoning Venezuela Dalian, Liaoning Colombia Dalian, Liaoning Brazil Dalian, Liaoning Norway Dalian, Liaoning Dalian Others, Liaoning Russia Dalian, Liaoning UAE Dalian, Liaoning Venezuela Dalian, Liaoning UK Dalian, Liaoning Dalian Eco. and Tech. Dev. Zone, Liaoning Russia Dalian, Liaoning Saudi Arabia Dalian, Liaoning UAE Dalian, Liaoning Colombia Dalian, Liaoning Qatar Dalian, Liaoning Daqing Others, Heilongjiang , Mongolia Hohhot, Inner Mongolia Manzhouli, Inner Mongolia Russia Harbin, Heilongjiang 1, Huludao, Liaoning Libya Shenyang, Liaoning Northwest , Urumqi High-tech Ind. Dev. Zone, Xinjiang Russia Urumqi, Xinjiang Kazakhstan Urumqi, Xinjiang Lanzhou Others, Gansu Russia Lanzhou, Gansu Yinchuan, Ningxia Russia Yinchuan, Ningxia North , , Cangzhou, Hebei Angola Tianjin, Tianjin Beijing (Fangshan) Iran Tianjin, Tianjin Kuwait Shijiazhuang, Hebei Russia Tianjin, Tianjin Saudi Arabia Shijiazhuang, Hebei Brazil Tianjin, Tianjin Shijiazhuang Others, Hebei Kuwait Shijiazhuang, Hebei Oman Tianjin, Tianjin Russia Tianjin, Tianjin Egypt Tianjin, Tianjin Tianjin (Binhai New Area (Dagang)) Iraq Shijiazhuang, Hebei Kuwait Shijiazhuang, Hebei Saudi Arabia Shijiazhuang, Hebei Colombia Shijiazhuang, Hebei UK Tianjin, Tianjin Beijing (Chaoyang District) Oman Tianjin, Tianjin Page 24 of 46

25 Chinese crude imports and exports in detail, Dec Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl Hebei Others, Hebei UAE Tianjin, Tianjin East 3, , , , Dongying, Shandong , Angola Qingdao, Shandong Jinan, Shandong Oman Jinan, Shandong Russia Qingdao, Shandong Jinan, Shandong Brazil Qingdao, Shandong Jinan, Shandong Malaysia Qingdao, Shandong Congo (Brazzaville) Jinan, Shandong Equatorial Guinea Qingdao, Shandong Zibo, Shandong Angola Jinan, Shandong Kuwait Qingdao, Shandong Mongolia Hohhot, Inner Mongolia Dezhou, Shandong Brazil Tianjin, Tianjin Qingdao, Shandong Heze, Shandong Colombia Qingdao, Shandong Brazil Qingdao, Shandong US Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Ningbo Others, Zhejiang , Angola Ningbo, Zhejiang Iran Ningbo, Zhejiang Iraq Ningbo, Zhejiang Kuwait Ningbo, Zhejiang Oman Ningbo, Zhejiang Saudi Arabia Ningbo, Zhejiang Venezuela Ningbo, Zhejiang South Sudan Ningbo, Zhejiang Qingdao Eco. and Tech. Dev.Zone, Shandong , Iran Qingdao, Shandong Iraq Qingdao, Shandong Kuwait Qingdao, Shandong Russia Qingdao, Shandong Colombia Qingdao, Shandong US Qingdao, Shandong Cameroon Qingdao, Shandong Qingdao Others, Shandong , Angola Qingdao, Shandong Iran Qingdao, Shandong Kuwait Qingdao, Shandong Russia Qingdao, Shandong Venezuela Qingdao, Shandong Colombia Qingdao, Shandong Brazil Qingdao, Shandong US Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Rizhao, Shandong , , Angola Qingdao, Shandong Iran Qingdao, Shandong Oman Qingdao, Shandong Russia Qingdao, Shandong Saudi Arabia Qingdao, Shandong Venezuela Qingdao, Shandong Brazil Qingdao, Shandong Gabon Qingdao, Shandong UK Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Page 25 of 46

26 Chinese crude imports and exports in detail, Dec Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl South Africa Qingdao, Shandong Shanghai (Pudong New Area) Iraq Hangzhou, Zhejiang Vietnam Hangzhou, Zhejiang Egypt Hangzhou, Zhejiang Libya Hangzhou, Zhejiang Weifang Other, Shandong Angola Jinan, Shandong Russia Qingdao, Shandong Jinan, Shandong Malaysia Qingdao, Shandong US Jinan, Shandong Congo (Brazzaville) Jinan, Shandong Yantai Others, Shandong Venezuela Qingdao, Shandong Malaysia Qingdao, Shandong Congo (Brazzaville) Qingdao, Shandong Longkou, Shandong Oman Qingdao, Shandong Russia Qingdao, Shandong Venezuela Qingdao, Shandong Nanjing Others, Jiangsu , Iran Ningbo, Zhejiang Iraq Ningbo, Zhejiang Hangzhou, Zhejiang Kuwait Ningbo, Zhejiang Oman Ningbo, Zhejiang Hangzhou, Zhejiang Russia Ningbo, Zhejiang Saudi Arabia Hangzhou, Zhejiang Shanghai (Jinshan) , Iraq Ningbo, Zhejiang Hangzhou, Zhejiang Kuwait Ningbo, Zhejiang Oman Ningbo, Zhejiang Hangzhou, Zhejiang Saudi Arabia Ningbo, Zhejiang Hangzhou, Zhejiang Colombia Hangzhou, Zhejiang Shanghai (Pudong Others) Angola Ningbo, Zhejiang Russia Ningbo, Zhejiang Nanjing Pukou high-tech, Jiangsu Oman Qingdao, Shandong Saudi Arabia Hangzhou, Zhejiang Xuzhou, Jiangsu Oman Tianjin, Tianjin South 1, , , , Beihai, Guangxi Angola Zhanjiang, Guangdong Iran Zhanjiang, Guangdong Maoming, Guangdong , Angola Zhanjiang, Guangdong Iran Zhanjiang, Guangdong Kuwait Zhanjiang, Guangdong Oman Zhanjiang, Guangdong Saudi Arabia Zhanjiang, Guangdong South Sudan Zhanjiang, Guangdong US Zhanjiang, Guangdong Ecuador Zhanjiang, Guangdong Mexico Zhanjiang, Guangdong Qinzhou, Guangxi Oman Nanning, Guangxi Saudi Arabia Nanning, Guangxi Page 26 of 46

27 Chinese crude imports and exports in detail, Dec Imports by destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t $/bl South Sudan Nanning, Guangxi Guangzhou Others, Guangdong , Angola Shenzhen, Guangdong Iraq Huangpu, Guangdong Oman Huangpu, Guangdong Shenzhen, Guangdong Saudi Arabia Shenzhen, Guangdong Colombia Shenzhen, Guangdong South Sudan Shenzhen, Guangdong Mexico Shenzhen, Guangdong Huizhou Others, Guangdong Angola Shenzhen, Guangdong Kuwait Shenzhen, Guangdong Saudi Arabia Shenzhen, Guangdong Zhangjiang, Guangdong Iran Zhanjiang, Guangdong Venezuela Zhanjiang, Guangdong Gabon Zhanjiang, Guangdong Ghana Zhanjiang, Guangdong US Zhanjiang, Guangdong Quanzhou, Fujian , Russia Xiamen, Fujian Saudi Arabia Xiamen, Fujian Zhuhai zone, Guangdong Venezuela Qingdao, Shandong Brazil Dalian, Liaoning Central Yueyang, Hunan Vietnam Hangzhou, Zhejiang Egypt Hangzhou, Zhejiang Libya Hangzhou, Zhejiang Yan'an, Shaanxi Brazil Qingdao, Shandong Malaysia Qingdao, Shandong Argentina Qingdao, Shandong South Africa Qingdao, Shandong Other Various Various small cargoes Southwest Kunming Others, Yunnan Kuwait Kunming, Yunnan Saudi Arabia Kunming, Yunnan Total imports 7, , , , Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t $/bl East Zhoushan, Zhejiang Philippines Hangzhou,Zhejiang Qingdao Others, Shandong Malaysia Qingdao,Shandong South Zhangjiang, Guangdong Japan Zhanjiang,Guangdong Total exports Net imports 7, ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Page 27 of 46

28 refinery throughputs Refinery throughputs, Jan (plan) Province Owner Capacity Crude sources Shutdowns 000 b/d Jan (plan) ± Dec mn t/yr 000 b/d 000t 000 b/d % util. 000 b/d Northeast* ,050 Local, some Russian rail 0 7,650 1, Dalian (PetroChina) Liaoning PC Daqing, Russian rail, West Africa 0 1, Daqing petrochemical Heilongjiang PC Local (Daqing), some Russian rail Daqing refining & chemical Heilongjiang PC Local (Daqing), some Russian rail Fushun Liaoning PC Local (Daqing 85%, Fushun 15%) Harbin Heilongjiang PC Daqing, Russian rail 20% Jilin petrochemical Jilin PC Local (Daqing, Jilin), Russian rail 20% Jinxi Liaoning PC Domestic, Imports 10% Jinzhou Liaoning PC Domestic, Imports 30% (Chad, Russia etc) Liaohe, Panjin Liaoning PC Local (Liaohe) Liaoyang Liaoning PC Local (Liaohe, Daqing) Russian rail 20% Wepec Dalian Liaoning W Mideast sour imports only Northwest* ,224 Xinjiang, local, Kazakh rail/pipeline 0 3, Changqing, Xianyang Shaanxi PC Local (Changqing) Dushanzi Xinjiang PC Xinjiang, Kazakh (40pc) Karamay Xinjiang PC Xinjiang Lanzhou Gansu PC Xinjiang, local Tahe Xinjiang S Local (Tahe) Urumqi Xinjiang PC Xinjiang, Kazakh Xian Shaanxi S Local (Yanchang) Yumen Gansu PC Xinjiang, local North* :50 seaborne imports:domestic 0 4,340 1, Beijing Yanshan Beijing S Daqing, some imports 0 1, Cangzhou Hebei S Domestic 50%, Imports (Oman etc) 50% Dagang Tianjin PC Local (Dagang) Huabei, Renqiu Hebei PC Local (Huabei) Shijiazhuang Hebei S Local (Huabei), Russian rail 30% Tianjin Tianjin S Local (Dagang) 50%, Imports (sweet) 50% 0 1, East* ,528 2/3 imports 0 8,720 2, Jinan Shandong S Local (Shengli) Qilu, Zibo Shandong S Local 50%, Imports (ME, Waf) 50% Qingdao Shandong S Imports only (Mideast sour crude) Qingdao Petrochemical Shandong S Imports only (Mideast sour crude) Yangtze River Delta ,698 2/3 imports 0 6,200 1, Gaoqiao, Shanghai Shanghai S Imports (sweets) 50%, local 0 1, Jinling, Nanjing Jiangsu S Imports 50% 0 1, Shanghai (Jinshan) Shanghai S Imports (light & medium) 75% 0 1, Yangzi, Nanjing Jiangsu S Imports (sours) 60%, Shengli 0 1, Zhenhai, Ningbo Zhejiang S Imports; over 2/3 sour 0 1, Central* % imports (Angola etc) 0 4, Anqing Anhui S Imported sours, Shengli, Daqing Changling, Yueyang Hunan S Shengli 60-70%, imports Jingmen Hubei S Domestic 50%, imports 50% Jiujiang Jiangxi S Shengli (60-70%), imports Luoyang Henan S Imports (Oman/Russia) 50%+, domestic Wuhan Hubei S Domestic, imports Yueyang Petchem (Baling) Hunan S Shengli, Daqing, imports South* , % imports 0 5, , Fujian, Quanzhou Fujian S Imports (Yemen, Oman etc) 0 1, Hainan Hainan S Imports (Mideast, Angola) Qinzhou Guangxi PC Imports (Light, sweet Angolan/Australian) Pearl River Delta % imports 0 3, Guangzhou Guangdong S Imports (Angola, Oman etc) 0 1, Maoming Guangdong S Imports (Mideast sour crude) 0 1, Zhanjiang Dongxing Guangdong S Imports (Libya, Angola etc) Southwest Anning Yunnan PC Imports (Mideast Guilf) Pengzhou Sichuan PC Imports /Light, sweet Kazakhstan) Total Sinopec* , ,017 5, Total PetroChina* , ,206 3, Total above 47 refineries , ,170 8, Total China* , ,112 12, PetroChina + S'pec % of total China Above 47 refineries % of total China *China total and company totals include plants not listed. Regional totals are for listed plants only. PetroChina total includes refineries under CNPC and Wepec. China total refinery capacity includes 46 major PC/S-owned plants identified as well as 730,000 b/d of, smaller plants operated by the two oil giants. Additionally, it includes CNOOC s Huizhou refinery in Guangdong and 10 of the country s largest teakettle refineries totalling 1.36mn b/d. PC=PetroChina W=Wepec S=Sinopec Page 28 of 46

29 refinery throughputs Refinery throughputs, Nov (confirmed) Nov Oct Jan-Nov ± t 000 b/d % util. 000t 000 b/d % util. 000t 000 b/d % util. 000 b/d % Northeast* 7,600 1, ,990 1, ,975 1, Dalian (PetroChina) 1, , , Daqing petrochemical , Daqing refining & chemical , Fushun , Harbin , Jilin petrochemical , Jinxi , Jinzhou , Liaohe, Panjin , Liaoyang , Wepec Dalian , Northwest* 3, , , Changqing, Xianyang , Dushanzi , Karamay , Lanzhou , Tahe , Urumqi , Yumen , North* 4, , , Beijing Yanshan , Cangzhou , Dagang , Huabei, Renqiu , Shijiazhuang , Tianjin 1, , , East* 8,320 2, ,275 1, ,395 1, Jinan , Qilu, Zibo , Qingdao , Qingdao Petrochemical , Yangtze River Delta 5,900 1, ,130 1, ,820 1, Gaoqiao, Shanghai 1, , , Jinling, Nanjing 1, , , Shanghai (Jinshan) 1, , , Yangzi, Nanjing 1, , , Zhenhai, Ningbo 1, , , Central* 3, , , Anqing , Changling, Yueyang , Jingmen , Jiujiang , Luoyang , Wuhan , Yueyang Petchem (Baling) , South* 4,420 1, ,820 1, ,470 1, Fujian, Quanzhou , , Hainan , Qinzhou , Pengzhou , Pearl River Delta 2, , , Guangzhou 1, , , Maoming 1, , , Zhanjiang Dongxing , Southwest 1, , , Anning , Pengzhou , Total Sinopec* 20,277 4, ,912 4, ,732 4, Total PetroChina* 14,695 3, ,274 3, ,509 3, Total above 47 refineries 32,200 7, ,445 7, ,650 7, Total China* 494,290 12, ,749 12, ,041 21, , PetroChina + S'pec % of total China Above 47 refineries % of total China *China total and company totals include plants not listed. Regional totals are for listed plants only. PetroChina total includes refineries under CNPC and Wepec. China total refinery capacity includes 46 major PetroChina/Sinopec-owned plants identified as well as 730,000 b/d of, smaller plants operated by the two oil giants. Additionally, it includes CNOOC s Huizhou refinery in Guangdong and 10 of the country s largest teakettle refineries totalling 1.36mn b/d. Page 29 of 46

30 refinery throughputs Sinopec total runs mn b/d Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct Sinopec vs PetroChina runs % utilisation Sinopec PetroChina 55 Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct PetroChina total runs mn b/d Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct Domestic vs import economics % utilisation Northeast refineries running domestic crude Northeast refineries running imported crude 60 Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct Sweet vs sour imports % utilisation Refineries running sweet imports Refineries running sour imports 30 Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct NW China refinery runs % utilisation Running Kazakh crude Running domestic crude only 20 Jan 16 Apr Jul Oct Jan 17 Apr Jul Oct Shandong imports and runs mn b/d Shandong runs Shandong imports Guangdong imports and runs mn b/d 1.5 Guangdong runs Guangdong imports Page 30 of 46

31 Fuel oil imports/exports Chinese fuel oil (no. 5-7 grade) imports and exports in detail, Nov Destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Northeast Dalian Others, Liaoning Singapore Dalian Customs, Liaoning Malaysia Dalian Customs, Liaoning North Qinhuangdao Others, Hebei Japan Shijiazhuang Customs, Hebei Tianjin (Binhai New Area) Singapore Tianjin Customs, Tianjin Japan Tianjin Customs, Tianjin East Jiangyin, Jiangsu South Korea Nanjing Customs, Jiangsu Zhoushan, Zhejiang Singapore Hangzhou Customs, Zhejiang Japan Hangzhou Customs, Zhejiang Malaysia Hangzhou Customs, Zhejiang Taizhou, Jiangsu Singapore Nanjing Customs, Jiangsu Longkou, Shandong Malaysia Qingdao Customs, Shandong Qingdao Others, Shandong Singapore Qingdao Customs, Shandong Shanghai (Pudong New Area) Japan Shanghai Customs, Shanghai Weifang Other, Shandong Malaysia Qingdao Customs, Shandong Qingdao Eco Tec. Dev.Zone, Shandong Singapore Qingdao Customs, Shandong Malaysia Qingdao Customs, Shandong Shanghai (Nanhui) Singapore Shanghai Customs, Shanghai Japan Shanghai Customs, Shanghai Dongying, Shandong Malaysia Qingdao Customs, Shandong South Panyu, Guangdong Singapore Guangzhou Customs, Guangdong Xiamen SEZ, Fujian Singapore Xiamen Customs, Fujian Nansha Others, Guangdong Singapore Guangzhou Customs, Guangdong Malaysia Guangzhou Customs, Guangdong Other Various Various small cargoes Other fuel oil Total imports , Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Dalian Others, Liaoning Panama Dalian Customs, Liaoning Singapore Dalian Customs, Liaoning Hong Kong Dalian Customs, Liaoning Liberia Dalian Customs, Liaoning Marshall Islands Dalian Customs, Liaoning Malta Dalian Customs, Liaoning Japan Dalian Customs, Liaoning Bahamas Dalian Customs, Liaoning UK Dalian Customs, Liaoning Greece Dalian Customs, Liaoning Italy Dalian Customs, Liaoning North Qinhuangdao Others, Hebei Panama Shijiazhuang Customs, Hebei Singapore Shijiazhuang Customs, Hebei Page 31 of 46

32 Fuel oil imports/exports Chinese fuel oil (no. 5-7 grade) imports and exports in detail, Nov Hong Kong Shijiazhuang Customs, Hebei Liberia Shijiazhuang Customs, Hebei Marshall Islands Shijiazhuang Customs, Hebei Greece Shijiazhuang Customs, Hebei Tianjin (Binhai New Area) Panama Tianjin Customs, Tianjin Singapore Tianjin Customs, Tianjin Hong Kong Tianjin Customs, Tianjin Liberia Tianjin Customs, Tianjin Marshall Islands Tianjin Customs, Tianjin Japan Tianjin Customs, Tianjin Bahamas Tianjin Customs, Tianjin UK Tianjin Customs, Tianjin Greece Tianjin Customs, Tianjin Italy Tianjin Customs, Tianjin East Jiangyin, Jiangsu Panama Nanjing Customs, Jiangsu Singapore Nanjing Customs, Jiangsu Hong Kong Nanjing Customs, Jiangsu Liberia Nanjing Customs, Jiangsu Marshall Islands Nanjing Customs, Jiangsu Malta Nanjing Customs, Jiangsu Bahamas Nanjing Customs, Jiangsu Greece Nanjing Customs, Jiangsu Antigua and Barbuda Nanjing Customs, Jiangsu India Nanjing Customs, Jiangsu Zhoushan, Zhejiang Panama Hangzhou Customs, Zhejiang Singapore Hangzhou Customs, Zhejiang Hong Kong Hangzhou Customs, Zhejiang Liberia Hangzhou Customs, Zhejiang Marshall Islands Hangzhou Customs, Zhejiang Malta Hangzhou Customs, Zhejiang Japan Hangzhou Customs, Zhejiang Bahamas Hangzhou Customs, Zhejiang Cyprus Hangzhou Customs, Zhejiang UK Hangzhou Customs, Zhejiang Greece Hangzhou Customs, Zhejiang Portugal Hangzhou Customs, Zhejiang Germany Hangzhou Customs, Zhejiang Denmark Hangzhou Customs, Zhejiang Norway Hangzhou Customs, Zhejiang Taizhou, Jiangsu Panama Nanjing Customs, Jiangsu Singapore Nanjing Customs, Jiangsu Hong Kong Nanjing Customs, Jiangsu Liberia Nanjing Customs, Jiangsu Marshall Islands Nanjing Customs, Jiangsu UK Nanjing Customs, Jiangsu South Korea Nanjing Customs, Jiangsu Qingdao Others, Shandong Panama Qingdao Customs, Shandong Singapore Qingdao Customs, Shandong Hong Kong Qingdao Customs, Shandong Liberia Qingdao Customs, Shandong Marshall Islands Qingdao Customs, Shandong Malta Qingdao Customs, Shandong Shanghai (Pudong New Area) Panama Shanghai Customs, Shanghai Singapore Shanghai Customs, Shanghai Hong Kong Shanghai Customs, Shanghai Liberia Shanghai Customs, Shanghai Marshall Islands Shanghai Customs, Shanghai Malta Shanghai Customs, Shanghai Japan Shanghai Customs, Shanghai Bahamas Shanghai Customs, Shanghai UK Shanghai Customs, Shanghai Page 32 of 46

33 Fuel oil imports/exports Chinese fuel oil (no. 5-7 grade) imports and exports in detail, Nov Greece Shanghai Customs, Shanghai Taiwan Shanghai Customs, Shanghai Antigua and Barbuda Shanghai Customs, Shanghai Qingdao Eco. /Tech. Dev. Zone, Shandong Panama Qingdao Customs, Shandong Liberia Qingdao Customs, Shandong Shanghai (Nanhui) Panama Shanghai Customs, Shanghai Hong Kong Shanghai Customs, Shanghai Liberia Shanghai Customs, Shanghai Marshall Islands Shanghai Customs, Shanghai Malta Shanghai Customs, Shanghai Cyprus Shanghai Customs, Shanghai UK Shanghai Customs, Shanghai Greece Shanghai Customs, Shanghai Taiwan Shanghai Customs, Shanghai Portugal Shanghai Customs, Shanghai Italy Shanghai Customs, Shanghai Denmark Shanghai Customs, Shanghai Norway Shanghai Customs, Shanghai Ningbo Others, Zhejiang Panama Ningbo Customs, Zhejiang Hong Kong Ningbo Customs, Zhejiang Nantong Others, Jiangsu Panama Nanjing Customs, Jiangsu Hong Kong Nanjing Customs, Jiangsu Marshall Islands Nanjing Customs, Jiangsu Malta Nanjing Customs, Jiangsu Zhangjiagang Others, Jiangsu Panama Nanjing Customs, Jiangsu Lianyungang Others, Jiangsu Panama Nanjing Customs, Jiangsu South Panyu, Guangdong Malta Guangzhou Customs, Guangdong Fuzhou Others, Fujian Australia Fuzhou Customs, Fujian Xiamen SEZ, Fujian Panama Xiamen Customs, Fujian Hong Kong Xiamen Customs, Fujian Japan Xiamen Customs, Fujian Australia Xiamen Customs, Fujian Indonesia Xiamen Customs, Fujian Nansha Others, Guangdong Hong Kong Guangzhou Customs, Guangdong Shenzhen SEZ, Guangdong Panama Shenzhen Customs, Guangdong Singapore Shenzhen Customs, Guangdong Hong Kong Shenzhen Customs, Guangdong Liberia Shenzhen Customs, Guangdong Cyprus Shenzhen Customs, Guangdong Zhuhai zone, Guangdong Hong Kong Zhuhai Customs, Guangdong Huizhou Others, Guangdong Hong Kong Shenzhen Customs, Guangdong Yangpu Eco. Dev. Zone, Hainan Hong Kong Haikou Customs, Hainan Other Various Various small cargoes Other fuel oil Total exports , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Imports and exports data from China General Administration of Customs Page 33 of 46

34 Fuel oil imports/exports Chinese fuel oil (no. 5-7 grade) imports and exports in detail, Dec Destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Northeast Dalian Others, Liaoning South Korea Dalian Customs, Liaoning North Qinhuangdao Others, Hebei South Korea Shijiazhuang Customs, Hebei Tianjin (Binhai New Area) Japan Tianjin Customs, Tianjin East , Jiangyin, Jiangsu Singapore Nanjing Customs, Jiangsu Zhoushan, Zhejiang Singapore Hangzhou Customs, Zhejiang South Korea Hangzhou Customs, Zhejiang Malaysia Hangzhou Customs, Zhejiang Kuwait Hangzhou Customs, Zhejiang Thailand Hangzhou Customs, Zhejiang UAE Hangzhou Customs, Zhejiang Taizhou, Jiangsu Singapore Nanjing Customs, Jiangsu Shanghai (Pudong New Area) Singapore Shanghai Customs, Shanghai South Korea Shanghai Customs, Shanghai Weifang Other, Shandong South Korea Qingdao Customs, Shandong Qingdao Eco. and Tech. Dev. Zone, Shandong Singapore Qingdao Customs, Shandong Malaysia Qingdao Customs, Shandong South Panyu, Guangdong Singapore Guangzhou Customs, Guangdong Xiamen SEZ, Fujian Singapore Xiamen Customs, Fujian Shenzhen SEZ, Guangdong Singapore Shenzhen Customs, Guangdong Zhuhai zone, Guangdong Singapore Zhuhai Customs, Guangdong Other Various Various small cargoes Other fuel oil Total imports , Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Dalian Others, Liaoning Panama Dalian Customs, Liaoning Singapore Dalian Customs, Liaoning Hong Kong Dalian Customs, Liaoning Liberia Dalian Customs, Liaoning Marshall Islands Dalian Customs, Liaoning Malta Dalian Customs, Liaoning Bahamas Dalian Customs, Liaoning Cyprus Dalian Customs, Liaoning Greece Dalian Customs, Liaoning North Qinhuangdao Others, Hebei Panama Shijiazhuang Customs, Hebei Hong Kong Shijiazhuang Customs, Hebei Liberia Shijiazhuang Customs, Hebei Tianjin (Binhai New Area) Panama Tianjin Customs, Tianjin Singapore Tianjin Customs, Tianjin Hong Kong Tianjin Customs, Tianjin Liberia Tianjin Customs, Tianjin Page 34 of 46

35 Fuel oil imports/exports Chinese fuel oil (no. 5-7 grade) imports and exports in detail, Dec Destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Marshall Islands Tianjin Customs, Tianjin Malta Tianjin Customs, Tianjin Japan Tianjin Customs, Tianjin UK Tianjin Customs, Tianjin Greece Tianjin Customs, Tianjin Italy Tianjin Customs, Tianjin East Jiangyin, Jiangsu Panama Nanjing Customs, Jiangsu Singapore Nanjing Customs, Jiangsu Hong Kong Nanjing Customs, Jiangsu Liberia Nanjing Customs, Jiangsu Marshall Islands Nanjing Customs, Jiangsu Malta Nanjing Customs, Jiangsu Japan Nanjing Customs, Jiangsu Bahamas Nanjing Customs, Jiangsu Greece Nanjing Customs, Jiangsu India Nanjing Customs, Jiangsu Zhoushan, Zhejiang Panama Hangzhou Customs, Zhejiang Singapore Hangzhou Customs, Zhejiang Hong Kong Hangzhou Customs, Zhejiang Liberia Hangzhou Customs, Zhejiang Marshall Islands Hangzhou Customs, Zhejiang Malta Hangzhou Customs, Zhejiang Japan Hangzhou Customs, Zhejiang Bahamas Hangzhou Customs, Zhejiang Cyprus Hangzhou Customs, Zhejiang UK Hangzhou Customs, Zhejiang Greece Hangzhou Customs, Zhejiang Taiwan Hangzhou Customs, Zhejiang Portugal Hangzhou Customs, Zhejiang South Korea Hangzhou Customs, Zhejiang Denmark Hangzhou Customs, Zhejiang Bulgaria Hangzhou Customs, Zhejiang Taizhou, Jiangsu Panama Nanjing Customs, Jiangsu Singapore Nanjing Customs, Jiangsu Hong Kong Nanjing Customs, Jiangsu Liberia Nanjing Customs, Jiangsu Marshall Islands Nanjing Customs, Jiangsu Cyprus Nanjing Customs, Jiangsu Greece Nanjing Customs, Jiangsu Qingdao Others, Shandong Panama Qingdao Customs, Shandong Hong Kong Qingdao Customs, Shandong Liberia Qingdao Customs, Shandong Malta Qingdao Customs, Shandong Cyprus Qingdao Customs, Shandong UK Qingdao Customs, Shandong Shanghai (Pudong New Area) Panama Shanghai Customs, Shanghai Singapore Shanghai Customs, Shanghai Hong Kong Shanghai Customs, Shanghai Liberia Shanghai Customs, Shanghai Marshall Islands Shanghai Customs, Shanghai Malta Shanghai Customs, Shanghai Japan Shanghai Customs, Shanghai Bahamas Shanghai Customs, Shanghai Cyprus Shanghai Customs, Shanghai UK Shanghai Customs, Shanghai Taiwan Shanghai Customs, Shanghai Germany Shanghai Customs, Shanghai Antigua and Barbuda Shanghai Customs, Shanghai Page 35 of 46

36 Fuel oil imports/exports Chinese fuel oil (no. 5-7 grade) imports and exports in detail, Dec Destination (city, province)^ 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Norway Shanghai Customs, Shanghai Netherlands Shanghai Customs, Shanghai Shanghai (Nanhui) Panama Shanghai Customs, Shanghai Singapore Shanghai Customs, Shanghai Hong Kong Shanghai Customs, Shanghai Liberia Shanghai Customs, Shanghai Marshall Islands Shanghai Customs, Shanghai Malta Shanghai Customs, Shanghai Cyprus Shanghai Customs, Shanghai UK Shanghai Customs, Shanghai Portugal Shanghai Customs, Shanghai Germany Shanghai Customs, Shanghai Italy Shanghai Customs, Shanghai Denmark Shanghai Customs, Shanghai Ningbo Others, Zhejiang Panama Ningbo Customs, Zhejiang Hong Kong Ningbo Customs, Zhejiang Liberia Ningbo Customs, Zhejiang Nantong Others, Jiangsu Panama Nanjing Customs, Jiangsu Marshall Islands Nanjing Customs, Jiangsu Zhangjiagang Others, Jiangsu Panama Nanjing Customs, Jiangsu Lianyungang Others, Jiangsu Panama Nanjing Customs, Jiangsu South Panyu, Guangdong Malta Guangzhou Customs, Guangdong Fuzhou Others, Fujian Indonesia Fuzhou Customs, Fujian Philippines Fuzhou Customs, Fujian Xiamen SEZ, Fujian Hong Kong Xiamen Customs, Fujian Marshall Islands Xiamen Customs, Fujian South Korea Xiamen Customs, Fujian Australia Xiamen Customs, Fujian US Xiamen Customs, Fujian Nansha Others, Guangdong Hong Kong Guangzhou Customs, Guangdong Shenzhen SEZ, Guangdong Panama Shenzhen Customs, Guangdong Hong Kong Shenzhen Customs, Guangdong Liberia Shenzhen Customs, Guangdong Taiwan Shenzhen Customs, Guangdong Zhuhai zone, Guangdong Hong Kong Zhuhai Customs, Guangdong Zhangjiang, Guangdong Panama Zhanjiang Customs, Guangdong Singapore Zhanjiang Customs, Guangdong Other Various Various small cargoes Other fuel oil Total exports , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Imports and exports data from China General Administration of Customs Page 36 of 46

37 Product imports/exports Chinese jet-kerosine imports and exports in detail, Nov Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t North Beijing (Chaoyang District) South Korea Beijing Customs, Beijing Tianjin (Dongli) South Korea Tianjin Customs, Tianjin East Shanghai (Nanhui) South Korea Shanghai Customs, Shanghai Shanghai (Pudong New Area) South Korea Shanghai Customs, Shanghai Singapore Shanghai Customs, Shanghai South Guangzhou Others, Guangdong South Korea Guangzhou Customs, Guangdong Zhuhai zone, Guangdong South Korea Zhuhai Customs, Guangdong Malaysia Zhuhai Customs, Guangdong Total imports Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Dalian Others, Liaoning South Korea Dalian Customs,Liaoning US Dalian Customs,Liaoning North Beijing (Chaoyang District) Canada Beijing Customs,Beijing France Beijing Customs,Beijing Russia Beijing Customs,Beijing Singapore Beijing Customs,Beijing UAE Beijing Customs,Beijing US Beijing Customs,Beijing Germany Beijing Customs,Beijing East Shanghai (Changning) South Korea Shanghai Customs,Shanghai Japan Shanghai Customs,Shanghai Hong Kong Shanghai Customs,Shanghai Singapore Shanghai Customs,Shanghai Macao Shanghai Customs,Shanghai Taiwan Shanghai Customs,Shanghai Shanghai (Pudong New Area) South Korea Shanghai Customs,Shanghai Japan Shanghai Customs,Shanghai Hong Kong Shanghai Customs,Shanghai Canada Shanghai Customs,Shanghai France Shanghai Customs,Shanghai Russia Shanghai Customs,Shanghai Singapore Shanghai Customs,Shanghai UAE Shanghai Customs,Shanghai US Shanghai Customs,Shanghai Vietnam Shanghai Customs,Shanghai UK Shanghai Customs,Shanghai Germany Shanghai Customs,Shanghai Ethiopia Shanghai Customs,Shanghai Sweden Shanghai Customs,Shanghai Netherlands Shanghai Customs,Shanghai Qatar Shanghai Customs,Shanghai Turkey Shanghai Customs,Shanghai Indonesia Shanghai Customs,Shanghai Luxembourg Shanghai Customs,Shanghai Finland Shanghai Customs,Shanghai Switzerland Shanghai Customs,Shanghai New Zealand Shanghai Customs,Shanghai Azerbaijan Shanghai Customs,Shanghai Page 37 of 46

38 Product imports/exports Chinese jet-kerosine imports and exports in detail, Nov Australia Shanghai Customs,Shanghai Austria Shanghai Customs,Shanghai Iran Shanghai Customs,Shanghai Malaysia Shanghai Customs,Shanghai Philippines Shanghai Customs,Shanghai Belgium Shanghai Customs,Shanghai Taiwan Shanghai Customs,Shanghai Nanjing Others, Jiangsu US Nanjing Customs,Jiangsu Germany Nanjing Customs,Jiangsu Thailand Nanjing Customs,Jiangsu Qingdao Eco. and Tech. Dev. Zone, Shandong Singapore Qingdao Customs,Shandong Australia Qingdao Customs,Shandong Ningbo Others, Zhejiang South Korea Ningbo Customs,Zhejiang Hong Kong Ningbo Customs,Zhejiang Australia Ningbo Customs,Zhejiang Nanjing Pukou high-tech export Hong Kong Nanjing Customs,Jiangsu South Maoming, Guangdong Hong Kong Zhanjiang Customs,Guangdong Vietnam Zhanjiang Customs,Guangdong Macao Zhanjiang Customs,Guangdong Sanya, Hainan Russia Haikou Customs,Hainan Guangzhou Others, Guangdong Japan Guangzhou Customs,Guangdong Hong Kong Huangpu Customs,Guangdong Singapore Guangzhou Customs,Guangdong Macao Huangpu Customs,Guangdong UK Guangzhou Customs,Guangdong Taiwan Guangzhou Customs,Guangdong Huizhou Others, Guangdong Hong Kong Shenzhen Customs,Guangdong Vietnam Shenzhen Customs,Guangdong Philippines Shenzhen Customs,Guangdong Xiamen SEZ, Fujian Hong Kong Xiamen Customs,Fujian Shenzhen SEZ, Guangdong US Shenzhen Customs,Guangdong Yangpu Eco. Dev. Zone, Hainan Australia Haikou Customs,Hainan Quanzhou, Fujian Hong Kong Xiamen Customs,Fujian Central Chengdu Others, Sichuan Hong Kong Chengdu Customs,Sichuan Wuhan Others, Hubei Hong Kong Wuhan Customs,Hubei Zhengzhou Others, Henan Russia Zhengzhou Customs,Henan Luxembourg Zhengzhou Customs,Henan Thailand Zhengzhou Customs,Henan Other Various Various small cargoes Total exports , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Page 38 of 46

39 Product imports/exports Chinese jet-kerosine imports and exports in detail, Dec Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t North Beijing (Chaoyang District) South Korea Beijing Customs, Beijing East Shanghai (Changning) South Korea Shanghai Customs, Shanghai Shanghai (Nanhui) South Korea Shanghai Customs, Shanghai Shanghai (Pudong New Area) South Korea Shanghai Customs, Shanghai South Guangzhou Others, Guangdong Singapore Guangzhou Customs, Guangdong Malaysia Guangzhou Customs, Guangdong Total imports Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Dalian Others, Liaoning South Korea Dalian Customs,Liaoning Hong Kong Dalian Customs,Liaoning US Dalian Customs,Liaoning Dalian Eco. and Tech. Dev. Zone, Liaoning Hong Kong Dalian Customs,Liaoning Huludao, Liaoning Hong Kong Shenyang Customs,Liaoning North Beijing (Chaoyang District) South Korea Beijing Customs,Beijing Japan Beijing Customs,Beijing Hong Kong Beijing Customs,Beijing Canada Beijing Customs,Beijing France Beijing Customs,Beijing Russia Beijing Customs,Beijing Singapore Beijing Customs,Beijing UAE Beijing Customs,Beijing US Beijing Customs,Beijing UK Beijing Customs,Beijing Germany Beijing Customs,Beijing Ethiopia Beijing Customs,Beijing Sweden Beijing Customs,Beijing Netherlands Beijing Customs,Beijing Qatar Beijing Customs,Beijing Indonesia Beijing Customs,Beijing Finland Beijing Customs,Beijing Switzerland Beijing Customs,Beijing Thailand Beijing Customs,Beijing Austria Beijing Customs,Beijing Malaysia Beijing Customs,Beijing Sri Lanka Beijing Customs,Beijing East Shanghai (Pudong New Area) South Korea Shanghai Customs,Shanghai Japan Shanghai Customs,Shanghai Hong Kong Shanghai Customs,Shanghai Canada Shanghai Customs,Shanghai France Shanghai Customs,Shanghai Russia Shanghai Customs,Shanghai Singapore Shanghai Customs,Shanghai UAE Shanghai Customs,Shanghai US Shanghai Customs,Shanghai Vietnam Shanghai Customs,Shanghai UK Shanghai Customs,Shanghai Germany Shanghai Customs,Shanghai Ethiopia Shanghai Customs,Shanghai Sweden Shanghai Customs,Shanghai Netherlands Shanghai Customs,Shanghai Qatar Shanghai Customs,Shanghai Turkey Shanghai Customs,Shanghai Indonesia Shanghai Customs,Shanghai Luxembourg Shanghai Customs,Shanghai Finland Shanghai Customs,Shanghai Switzerland Shanghai Customs,Shanghai New Zealand Shanghai Customs,Shanghai Thailand Shanghai Customs,Shanghai Azerbaijan Shanghai Customs,Shanghai Australia Shanghai Customs,Shanghai Austria Shanghai Customs,Shanghai Page 39 of 46

40 Product imports/exports Chinese jet-kerosine imports and exports in detail, Dec Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Iran Shanghai Customs,Shanghai Malaysia Shanghai Customs,Shanghai Philippines Shanghai Customs,Shanghai Belgium Shanghai Customs,Shanghai Taiwan Shanghai Customs,Shanghai Sri Lanka Shanghai Customs,Shanghai India Shanghai Customs,Shanghai Mexico Shanghai Customs,Shanghai Spain Shanghai Customs,Shanghai Nanjing Others, Jiangsu Hong Kong Nanjing Customs,Jiangsu US Nanjing Customs,Jiangsu Vietnam Nanjing Customs,Jiangsu Germany Nanjing Customs,Jiangsu Thailand Nanjing Customs,Jiangsu Australia Nanjing Customs,Jiangsu Italy Nanjing Customs,Jiangsu Qingdao Eco./Tech.Dev. Zone, Shandong Singapore Qingdao Customs,Shandong Ningbo Others, Zhejiang South Korea Ningbo Customs,Zhejiang Japan Ningbo Customs,Zhejiang Hong Kong Ningbo Customs,Zhejiang Singapore Ningbo Customs,Zhejiang Qingdao Others, Shandong Germany Qingdao Customs,Shandong Shanghai (Jinshan) Hong Kong Shanghai Customs,Shanghai South Maoming, Guangdong Vietnam Zhanjiang Customs,Guangdong Macao Zhanjiang Customs,Guangdong Sanya, Hainan Russia Haikou Customs,Hainan Guangzhou Others, Guangdong Japan Guangzhou Customs,Guangdong Hong Kong Huangpu Customs,Guangdong Singapore Guangzhou Customs,Guangdong Macao Huangpu Customs,Guangdong UK Guangzhou Customs,Guangdong Taiwan Guangzhou Customs,Guangdong Huizhou Others, Guangdong Hong Kong Shenzhen Customs,Guangdong Vietnam Shenzhen Customs,Guangdong Philippines Shenzhen Customs,Guangdong Xiamen SEZ, Fujian Hong Kong Xiamen Customs,Fujian Shenzhen SEZ, Guangdong South Korea Shenzhen Customs,Guangdong Japan Shenzhen Customs,Guangdong US Shenzhen Customs,Guangdong Thailand Shenzhen Customs,Guangdong Malaysia Shenzhen Customs,Guangdong Qinzhou, Guangxi Hong Kong Nanning Customs,Guangxi Central Chengdu Others, Sichuan Hong Kong Chengdu Customs,Sichuan Zhengzhou Others, Henan Russia Zhengzhou Customs,Henan US Zhengzhou Customs,Henan Netherlands Zhengzhou Customs,Henan Luxembourg Zhengzhou Customs,Henan Chongqing (Chongqing Liangjiang New) Russia Chongqing Customs,Chongqing Finland Chongqing Customs,Chongqing Other Various Various small cargoes Total exports , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Page 40 of 46

41 Product imports/exports Chinese gasoil/diesel imports and exports in detail, Nov Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Other Various Various small cargoes Total imports Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Jinzhou, Liaoning Singapore Shenyang Customs,Liaoning Hong Kong Shenyang Customs,Liaoning Liaoyuan, Liaoning Singapore Dalian Customs,Liaoning Dalian Others, Liaoning Singapore Dalian Customs,Liaoning Hong Kong Dalian Customs,Liaoning New Zealand Dalian Customs,Liaoning Huludao, Liaoning Hong Kong Shenyang Customs,Liaoning South Korea Shenyang Customs,Liaoning Dalian Eco. and Tech. Dev. Zone, Liaoning Singapore Dalian Customs,Liaoning South Korea Dalian Customs,Liaoning Philippines Dalian Customs,Liaoning North Tianjin (Binhai New Area) Panama Tianjin Customs,Tianjin Tianjin (Binhai New Area (Dagang)) Netherlands Tianjin Customs,Tianjin East Shanghai (Jinshan) Hong Kong Shanghai Customs,Shanghai Bangladesh Shanghai Customs,Shanghai South Korea Shanghai Customs,Shanghai Qingdao Others, Shandong Singapore Qingdao Customs,Shandong Panama Qingdao Customs,Shandong Nanjing Pukou high-tech export Singapore Nanjing Customs,Jiangsu Bangladesh Nanjing Customs,Jiangsu South Korea Nanjing Customs,Jiangsu Philippines Nanjing Customs,Jiangsu Qingdao Eco./ Tech. Dev. Zone, Shandong Singapore Qingdao Customs,Shandong Shanghai (Pudong New Area) South Korea Shanghai Customs,Shanghai Panama Shanghai Customs,Shanghai Ningbo Others, Zhejiang Singapore Ningbo Customs,Zhejiang Hong Kong Ningbo Customs,Zhejiang Bangladesh Ningbo Customs,Zhejiang South Korea Ningbo Customs,Zhejiang Nanjing Others, Jiangsu South Korea Nanjing Customs,Jiangsu Philippines Nanjing Customs,Jiangsu South Maoming, Guangdong Macao Zhanjiang Customs,Guangdong Myanmar Kunming Customs,Yunnan Vietnam Zhanjiang Customs,Guangdong Yangpu Eco. Dev. Zone, Hainan Singapore Haikou Customs,Hainan Hong Kong Haikou Customs,Hainan South Korea Haikou Customs,Hainan Philippines Haikou Customs,Hainan Vietnam Haikou Customs,Hainan Huizhou Others, Guangdong Singapore Huangpu Customs,Guangdong Philippines Huangpu Customs,Guangdong Shenzhen Customs,Guangdong Mexico Huangpu Customs,Guangdong Guangzhou Others, Guangdong Myanmar Kunming Customs,Yunnan Philippines Huangpu Customs,Guangdong Quanzhou, Fujian Singapore Xiamen Customs,Fujian South Korea Xiamen Customs,Fujian Philippines Xiamen Customs,Fujian Other Various Various small cargoes Total exports , , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Page 41 of 46

42 Product imports/exports Chinese gasoil/diesel imports and exports in detail, Dec Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t East Zhangjiagang Others, Jiangsu South Korea Nanjing Customs, Jiangsu Other Various Various small cargoes Total imports Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Jinzhou, Liaoning Hong Kong Shenyang Customs,Liaoning South Korea Shenyang Customs,Liaoning Liaoyuan, Liaoning Hong Kong Dalian Customs,Liaoning Dalian Others, Liaoning Singapore Dalian Customs,Liaoning Hong Kong Dalian Customs,Liaoning South Korea Dalian Customs,Liaoning Mexico Dalian Customs,Liaoning Huludao, Liaoning Hong Kong Shenyang Customs,Liaoning South Korea Shenyang Customs,Liaoning Dalian Eco. and Tech. Dev. Zone, Liaoning South Korea Dalian Customs,Liaoning North Tianjin (Binhai New Area (Dagang)) Singapore Tianjin Customs,Tianjin South Korea Tianjin Customs,Tianjin Mexico Tianjin Customs,Tianjin East Shanghai (Jinshan) Hong Kong Shanghai Customs,Shanghai Bangladesh Shanghai Customs,Shanghai Qingdao Eco. and Tec. Dev.Zone, Shandong Singapore Qingdao Customs,Shandong Shanghai (Pudong New Area) South Korea Shanghai Customs,Shanghai Ningbo Others, Zhejiang Singapore Ningbo Customs,Zhejiang Bangladesh Ningbo Customs,Zhejiang South Korea Ningbo Customs,Zhejiang Nanjing Others, Jiangsu Singapore Nanjing Customs,Jiangsu Philippines Nanjing Customs,Jiangsu Zhoushan, Zhejiang Hong Kong Hangzhou Customs,Zhejiang Liberia Hangzhou Customs,Zhejiang Weifang Other, Shandong Singapore Qingdao Customs,Shandong South Maoming, Guangdong Macao Zhanjiang Customs,Guangdong Myanmar Kunming Customs,Yunnan Hong Kong Zhanjiang Customs,Guangdong Yangpu Eco. Dev. Zone, Hainan Vietnam Haikou Customs,Hainan Huizhou Others, Guangdong Singapore Shenzhen Customs,Guangdong Hong Kong Huangpu Customs,Guangdong Shenzhen Customs,Guangdong South Korea Shenzhen Customs,Guangdong Philippines Shenzhen Customs,Guangdong Guangzhou Others, Guangdong Myanmar Kunming Customs,Yunnan Hong Kong Huangpu Customs,Guangdong Philippines Huangpu Customs,Guangdong Quanzhou, Fujian Singapore Xiamen Customs,Fujian Philippines Xiamen Customs,Fujian Qinzhou, Guangxi Hong Kong Nanning Customs,Guangxi Philippines Nanning Customs,Guangxi Mexico Nanning Customs,Guangxi Australia Nanning Customs,Guangxi Other Various Various small cargoes Total exports , , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid- Yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Page 42 of 46

43 Product imports/exports Chinese gasoline imports and exports in detail, Nov Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Total imports Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Jinzhou, Liaoning Singapore Shenyang Customs,Liaoning Japan Shenyang Customs,Liaoning Dalian Eco. and Tech. Dev. Zone, Liaoning Singapore Dalian Customs,Liaoning Indonesia Dalian Customs,Liaoning Malaysia Dalian Customs,Liaoning Philippines Dalian Customs,Liaoning Huludao, Liaoning Singapore Shenyang Customs,Liaoning South Korea Shenyang Customs,Liaoning Australia Shenyang Customs,Liaoning Dalian Others, Liaoning Singapore Dalian Customs,Liaoning East Shanghai (Pudong New Area) Indonesia Shanghai Customs,Shanghai Qingdao Eco. and Tec. Dev.Zone, Shandong Singapore Qingdao Customs,Shandong South Maoming, Guangdong Singapore Zhanjiang Customs,Guangdong Macao Zhanjiang Customs,Guangdong Myanmar Kunming Customs,Yunnan Qinzhou, Guangxi Singapore Nanning Customs,Guangxi Quanzhou, Fujian Singapore Xiamen Customs,Fujian Indonesia Xiamen Customs,Fujian Malaysia Xiamen Customs,Fujian Huizhou Others, Guangdong Singapore Huangpu Customs,Guangdong Malaysia Huangpu Customs,Guangdong Philippines Huangpu Customs,Guangdong Yangpu Eco. Dev. Zone, Hainan Singapore Haikou Customs,Hainan Malaysia Haikou Customs,Hainan Guangzhou Others, Guangdong Myanmar Kunming Customs,Yunnan Other , Various , Various small cargoes , Total exports , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid-yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Chinese naphtha imports and exports in detail, Nov Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t East Zhoushan, Zhejiang Egypt Hangzhou Customs, Zhejiang Russia Hangzhou Customs, Zhejiang Shanghai (Jinshan) South Korea Shanghai Customs, Shanghai Pakistan Shanghai Customs, Shanghai Qingdao Eco. Tech. Dev. Zone, Shandong South Korea Qingdao Customs, Shandong South Huizhou Others, Guangdong India Shenzhen Customs, Guangdong Algeria Shenzhen Customs, Guangdong Russia Shenzhen Customs, Guangdong Total imports Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Total exports Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Imports and exports data from China General Administration of Customs Page 43 of 46

44 Product imports/exports Chinese gasoline imports and exports in detail, Dec Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t Total imports Exports by origin (city, province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Northeast Jinzhou, Liaoning Singapore Shenyang Customs,Liaoning Philippines Shenyang Customs,Liaoning Australia Shenyang Customs,Liaoning Papua New Guinea Shenyang Customs,Liaoning Dalian Eco. and Tech. Dev. Zone, Liaoning Singapore Dalian Customs,Liaoning Indonesia Dalian Customs,Liaoning Philippines Dalian Customs,Liaoning Huludao, Liaoning Singapore Shenyang Customs,Liaoning Malaysia Shenyang Customs,Liaoning South Korea Shenyang Customs,Liaoning Dalian Others, Liaoning Singapore Dalian Customs,Liaoning Malaysia Dalian Customs,Liaoning Mexico Dalian Customs,Liaoning North Beijing (Xicheng) Malaysia Qingdao Customs,Shandong East Shanghai (Pudong New Area) Singapore Shanghai Customs,Shanghai Qingdao Eco. and Tech.Dev. Zone, Shandong Singapore Qingdao Customs,Shandong South Maoming, Guangdong Singapore Zhanjiang Customs,Guangdong Macao Zhanjiang Customs,Guangdong Myanmar Kunming Customs,Yunnan Qinzhou, Guangxi Singapore Nanning Customs,Guangxi Quanzhou, Fujian Malaysia Xiamen Customs,Fujian Huizhou Others, Guangdong Singapore Shenzhen Customs,Guangdong Yangpu Eco. Dev. Zone, Hainan Malaysia Haikou Customs,Hainan Guangzhou Others, Guangdong Singapore Huangpu Customs,Guangdong , Myanmar Kunming Customs,Yunnan , Other , Various Various small cargoes Total exports , Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Yangtze river delta destinations. Considerable volumes of crude designated as being for Yangtze delta destinations in the customs data end up at mid-yangtze refineries. Pearl river delta destinations. Imports and exports data from China General Administration of Customs Chinese naphtha imports and exports in detail, Dec Destination (city, province)* 000 b/d Origin country Arrival customs 000t 000 b/d $mn $/t North Tianjin (Binhai New Area (Dagang)) India Tianjin Customs, Tianjin East Zhoushan, Zhejiang Russia Hangzhou Customs, Zhejiang Shanghai (Jinshan) South Korea Shanghai Customs, Shanghai India Shanghai Customs, Shanghai Singapore Shanghai Customs, Shanghai Qingdao Eco. /Tech. Dev. Zone, Shandong South Korea Qingdao Customs, Shandong South Huizhou Others, Guangdong Algeria Shenzhen Customs, Guangdong Russia Shenzhen Customs, Guangdong Quanzhou, Fujian Kuwait Xiamen Customs, Fujian UAE Xiamen Customs, Fujian Zhuhai zone, Guangdong US Zhuhai Customs, Guangdong Total imports Exports by origin (City, Province)^ 000 b/d Destination Departure customs 000t 000 b/d $mn $/t Total exports Net imports ^ Destination (for imports) and origin (exports) in the customs entry usually refers to the shipment s final destination, but occasionally indicates an intermediate point. Imports and exports data from China General Administration of Customs Page 44 of 46

45 Map and graphs China crude infrastructure Khabarovsk K AZA K H S T A N KYRGYZST A N N E P A L Karamay Houshaoshan Alashankou Dushanzi Urumqi Shanshan Lunnan Korla Tazhong Mekong river CHI N A M O N GOL I A Pengzhou Lanzhou Yellow river Chengdu Chongqing Jiangjin Qinhuangdao Beijing Renqiu Dalian Shijiazhuang Tianjin Taiyuan Cangzhou Hejian Hui anbao Linyi Jingbian Qingdao Puyang Rizhao Maling Dongming Xianyang Wanzhou Yangtze river Luoyang Weigang Jingmen Yueyang Wuhan Jinzhou Jiujiang Liaoyang Tieling Harbin Changchun Jilin Fushun Dandong NORTH KOREA Yalujiang Suzhou Shanghai Nanjing Ma anshan Anqing Ningbo SOUTH KOREA Kozmino Crude apparent demand mn b/d Jan 16 Apr Jul Oct Jan 17 Jet-kero apparent demand mn b/d Jan 16 Crude pipeline Crude pipeline under construction Planned crude pipeline ESPO stage 2 pipeline Planned Burma Road pipeline Completed Burma Road pipeline Oil port Key refineries Planned refineries Rail terminal Apr Jul Oct Jan 17 Apr Jul Oct Apr Jul Oct Ruili M YANMAR ( B URMA) Ramree Petroleum apparent demand mn b/d Jan 16 Apr Jul Oct Jan 17 Diesel apparent demand mn b/d Jan 16 Baoshan Dali Chuxiong LAO S Apr Jul Oct Jan 17 Kunming VIETNAM Hainan Apr Jul Oct Apr Jul Oct Chenzhou Pearl river Guangzhou Maoming Qinzhou Zhanjiang Beihai Gasoline apparent demand mn b/d Jan 16 Apr Jul Oct Jan 17 Fuel oil apparent demand mn b/d Jan 16 Quanzhou Xiamen Xiamen Huizhou Shenzhen Quanzhou Apr Jul Oct Jan 17 T A I W A N Argus Apr Jul Oct Apr Jul Oct Page 45 of 46

46 Argus Biodiesel China 2018 Economic implications of UCO s rapid progress March Beijing, China 28 March Exhibition and networking cocktail 29 March Conference day Argus Ethanol China March Beijing, China Join us for two days of intensive market discussions and networking in China. Visit -China to register Market Reporting Bioenergy Consulting illuminating the markets Events Bioenergy Market Reporting Consulting Events Argus China Petroleum is published by Argus Media group Registered office Lacon House, 84 Theobald s Road, London, WC1X 8NL Tel: sales@argusmedia.com ISSN: Copyright notice All rights reserved All intellectual property rights in this publication and the information published herein are the exclusive property of Argus and/or its licensors (including exchanges) and may only be used under licence from Argus. Without limiting the foregoing, by accessing this publication you agree that you will not copy or reproduce or use any part of its contents (including, but not limited to, single prices or any other individual items of data) in any form or for any purpose whatsoever except under valid licence from Argus. Further, your access to and use of data from exchanges may be subject to additional fees and/or execution of a separate agreement, whether directly with the exchanges or through Argus. Trademark notice ARGUS, the ARGUS logo, ARGUS MEDIA, Argus China Petroleum, other ARGUS publication titles and ARGUS index names are trademarks of Argus Media Limited. Visit for more information. Disclaimer The data and other information published herein (the Data ) are provided on an as is basis. Argus and its licensors (including exchanges) make no warranties, express or implied, as to the accuracy, adequacy, timeliness, or completeness of the Data or fitness for any particular purpose. Argus and its licensors (including exchanges) shall not be liable for any loss, claims or damage arising from any party s reliance on the Data and disclaim any and all liability related to or arising out of use of the Data to the full extent permissible by law. Publisher Adrian Binks Chief operating officer Matthew Burkley Global compliance officer Jeffrey Amos Commercial manager Jo Loudiadis Managing editor Jim Nicholson Editor Tom Reed Tel: acp@argusmedia.com Customer support and sales: Technical queries technicalsupport@argusmedia.com All other queries support@argusmedia.com London, UK Tel: Astana, Kazakhstan Tel: Beijing, China Tel: Dubai Tel: Moscow, Russia Tel: Rio de Janeiro, Brazil Tel: Singapore Tel: Tokyo, Japan Tel: Argus Media Inc, Houston, US Tel: Argus Media Inc, New York, US Tel: illuminating the markets