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SINGAPORE / BEIJING (Reuters) – An unprecedented volume of Iranian oil is expected to arrive in China's northeastern port of Dalian in early November, before US sanctions come into effect. Iran, according to an Iranian shipping source and data on Refinitiv Eikon.
A flare on an oil rig next to an Iranian flag in the Gulf on July 25, 2005. REUTERS / Raheb Homavandi / File Photo
A source from the National Iranian Tanker Company said the company was shipping more than 20 million barrels of oil to Dalian.
"As our leaders have said, it will be impossible to stop Iran from selling its oil. We have different ways to sell our oil and when the tankers reach Dalian, we will decide to sell it to other buyers or to China, "said the source, without further details.
Up to now, a total of 22 million barrels of Iranian oil laden on supertanker oil tankers belonging to the National Iranian Tanker Co. (NITC) is expected to arrive in Dalian in October and November, the data showed. Dalian generally receives between 1 and 3 million barrels of Iranian oil each month, according to data dating back to January 2015.
Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries, finds fewer buyers for its crude before US sanctions on oil exports come into effect on November 4.
The Islamic country had previously stockpiled oil in Dalian during the latest round of sanctions in 2014, which was subsequently sold to buyers in South Korea and India. Some of the largest refineries and commercial oil storage facilities in China are located in Dalian.
One of 11 very large crude oil carriers (VLCCs) – Dune – dumped oil into a storage tank stuck in the Xingang section of Dalian Harbor on Oct. 8, Reuters reported last week, while a second VLCC Dino I had turned off his transponder the month of October. 13 near the port.
Dino I reappeared earlier this week near Taiwan and unloaded his cargo on board.
The Xingang area is home to several storage yards including commercial and strategic reserves. China National Petroleum Corp (CNPC) [CNPC.UL] and Dalian Port, PDA Co Ltd, both operate commercial storage facilities in the region, according to information provided on the companies' websites.
CNPC does not expect any arrival of Iranian oil to Dalian, said a source close to the record, adding that it was unlikely that buyers would lift Iranian oil into bonded tanks in Dalian because sanctions imposed by the United States.
Keeping the oil in bonded storage gives the owner of the cargo the option to sell oil to China or other buyers in the region.
NITC tankers have now turned off their tracking devices when they load or unload oil to evade US authorities while the United States will reimpose sanctions on Iran in early November, according to US officials. Refinitiv Eikon shipping data.
The data shows that three of the tankers, expected to arrive in China in November, will be heading to Changxing Island.
Reuters contacted NITC for comments, but officials were not immediately available because it is a weekend in Iran. A head of the media department at Dalian port could not comment immediately.
Report by Florence Tan to SINGAPORE, Meng Meng and Chen Aizhu to BEIJING; Edited by Manolo Serapio Jr. and David Evans
