Chinese refiner backs away from Russian oil amid sanctions fallout, Reuters says

A major inland Chinese refiner, Yanchang Petroleum, is seeking non-Russian oil as another state-run plant, Luoyang Petrochemical, closes its two crude distillation units following US sanctions, Reuters reports.
Yanchang seeks non-Russian oil for winter deliveries
Chinese refiner Yanchang Petroleum is now seeking crude supplies that do not originate from Russia, traders told Reuters. The company, backed by the Shaanxi provincial government and located in northern inland China, has launched a tender to secure non-Russian oil for delivery between December and mid-February.
Yanchang, which holds an annual import quota of 3.6 million metric tons or 26 million barrels, typically receives crude via rail from Tianjin port near Beijing. Until now, it had regularly bought Russian oil, with one trader noting the refiner used to import around one shipment per month, typically Far East export grades like ESPO blend or Sokol, Reuters reported.
Its decision to avoid Russian supplies marks a significant shift. China and India are the top buyers of Russian oil, but recent sanctions by the US and other Western countries have raised fears among buyers of falling afoul of secondary penalties. Yanchang has not responded to Reuters’ request for comment.
Sinopec’s Luoyang refinery shut amid supply disruption
At the same time, a separate Chinese state-owned refinery has suspended operations due to disruptions linked to those same sanctions. Reuters reports that Luoyang Petrochemical, a subsidiary of the Chinese state refining giant Sinopec, has shut down both of its crude distillation units for maintenance.
The halt comes after US authorities sanctioned a key oil terminal in eastern China in early October. That terminal handles roughly one-fifth of Sinopec’s crude imports. The action forced significant diversions in crude shipments and affected operations at connected plants supplied by pipeline, including Luoyang.
Three sources familiar with the situation told Reuters that Luoyang’s crude units, with a combined processing capacity of 200,000 barrels per day, have been offline since late October. The shutdown is expected to last through the end of November.

