China, Tehran’s largest oil client, has since late 2013 been stepping up purchases from the OPEC country after a landmark November nuclear deal eased some sanctions on Iran, making up the main portion of Asia’s higher imports since then.
Asian buyers are expected to import about 1.25 million-1.3 million barrels per day (bpd) of Iranian oil in the six months through June, mostly owing to China’s increases, industry and government sources have said.
Iran and six world powers met last week in Vienna to narrow differences and keep alive hopes of reaching a final nuclear deal by late July.
China’s May imports at 3.22 million tonnes, or 757,900 bpd, eased from a record high of nearly 800,000 bpd in the previous month.
Top refiner Sinopec Corp has since last November been lifting full contract volumes or more of Iranian oil deemed cheaper versus similar grades from Saudi Arabia, industry officials have told Reuters.
The increases were both a result of the state refiner’s new push to cut crude procurement costs and the easing sanctions environment, they said.
Also contributing to strong import figures were imports started around last August by an independently-run petrochemicals company in southeast China of condensate, a very light crude oil from Iran’s South Pars gas project. China counts condensate as crude oil.
The supplies have until now been on spot or semi-term basis. But from around August, they would be under a one-year term deal that was reached between state-run trader Zhuhai Zhenrong Corp and National Iranian Oil Company (NIOC).
Iran now ranks No.3 among the top suppliers, according to customs, with growth in the January-May period the fastest among China’s top suppliers, outpacing that of Iraq, Oman, Angola and Russia. (Reporting by Chen Aizhu and Judy Hua; Editing by Muralikumar Anantharaman)
