Guangzhou (JLC), September 20, 2018--JLC held an oil salon in Singapore on September 20 and had discussions with over 100 oil magnates, senior analysts and company representatives from all over the world.

    BP, Shell, ExxonMobil, Total, Trafigura, Glencore, Vitol, Eni, Petroleum Authority of Thailand,  Freepoint Commodities, Mercuria Energy, Phillips 66, Sumitomo, Petrobras, Philippine National Oil, among some others, participated in the salon.

    This salon, with the topic “Era for large refining-chemical complexes, China marches towards marketization”, had Singapore-based Sunshineoil as a co-speaker. It was held to share comprehensive data on China’s refineries, refined oil, gas, etc. and have in-depth discussions with industrial players, analysts, etc.

    Four speakers-JLC’s Amanda Zhao, general manager from the international department, senior oil analyst Zhou Guoxia and senior LPG analyst Yan Limin and Roger Chen, general manager of Singapore-based Sunshineoil, each gave a speech and discussed with participants on the Chinese energy market. Their speeches covered refinery development, quotas for crude, refined oil exports, marketization, the LPG market, etc.

    New Chinese independent refiners are coming online in 2018 as China gradually liberalizes the market, and this will contribute to most of the growth in China’s refining capacity, JLC said at the salon. As refined oil supply grows further with a diversified supply system and China pushes forward with marketization, market competition will become fiercer amid improving regulations.

    Chinese independent refiners have faced negative impacts from government policies, tight bank lending and strengthening environmental protection in 2018 and their operating rates plunged earlier this year. Their operating rates have been rebounding since August, but future operation is still uncertain because of tighter tax regulations and growing pressure from environmental protection.

    In the LPG market, China will probably stop importing LPG from the US, because of the trade war. As some importers seek substitute, their profit will probably be dampened by higher costs, but the Chinese LPG market will continue to see healthy growth.

    Coastal areas in southeast China will continue to contribute to most of the growth in China’s LPG market, because of easy access to port facilities and support from government policies.

    In his speech, Mr. Chen explained the development of China’s state-owned and independent refiners during 40 years of reform and opening-up. He explained the development of independent refiners in simple terms and displayed the bright prospects for China’s oil market. Mr. Chen also talked about China’s quotas for crude, the country’s refined oil exports, the International Maritime Organization’s sulfur cap as from 2020, China’s crude futures and chemical-oriented industrial chains.

    JLC, sponsor of the salon, will keep promoting communication between overseas and Chinese companies, creating more opportunities for international cooperation and extending its service. It will make enduring efforts to become an outstanding solution provider in the international bulk commodity market.