Yanchang Seeks Non-Russian Oil in Tender

Chinese refiner Yanchang Petroleum is seeking non-Russian oil in its latest crude tender, trade sources told Reuters on Tuesday, while others said Sinopec subsidiary Luoyang Petrochemical has shut for maintenance as an indirect result of Western sanctions.

China's state oil companies and some Indian refiners are avoiding buying Russian oil due to concerns about falling foul of secondary sanctions after recent western sanctions on Russian oil shipments, including last month's U.S. measures.

China and India are Russia's top oil export markets.

Yanchang, which is located in the landlocked northern province of Shaanxi and backed by the provincial government, is looking for non-Russian crude for deliveries between December and mid-February，two traders with knowledge of the matter said.

It had previously been a regular buyer of Russian oil, typically taking in one shipment per month, usually Far East export grade ESPO blend or Sokol, one of the traders said.

Yanchang did not respond to a request for comment.

Separately, Luoyang Petrochemical, a subsidiary refinery of Chinese state refining giant Sinopec, has closed its two crude distillation units for maintenance until the end of November, three other sources familiar with the matter said.

The shutdown came after the U.S. sanctioned a key terminal in eastern China in early October through which Sinopec receives a fifth of its crude imports, forcing diversions and affecting operations at subsidiary plants connected via pipelines.

Both of Luoyang's crude units, which have a total processing capacity of 200,000 barrels a day, were shut around the end of October, two of the sources said.

Sinopec did not respond to a request for comment.

Yanchang, which can process 348,000 bpd of crude, is one of the largest refiners in inland China and has an annual import quota of 3.6 million metric tons or 26 million barrels.

It typically receives imported crude from Tianjin port, near Beijing, where the oil is shipped to it by rail.

(Reuters)