SINGAPORE, March 28 (Reuters) - China's Rongsheng
Petrochemical, a major independent refiner, has
opened an office in Canada to buy Canadian crude and made its
first purchase from local producer Suncor Energy ( SU ), trade
sources said.
Rongsheng, China's largest independent refiner with capacity
of 40 million metric tons a year, or 800,000 barrels a day, has
become a regular buyer of the heavy sour Canadian crude since
the newly-expanded Trans-Mountain pipeline started operations
last May.
More Canadian crude is expected to flow into Asia this year,
as U.S. President Donald Trump threatens to impose a 10% import
tariff on its oil and gas.
Rongsheng's first purchase since opening the new office in
the western city of Calgary is for June-arrival crude cargo to
China, the sources said.
The company recently started buying Canadian crude on a
free-on-board (FOB) basis, while past purchases were mostly on a
delivered at place (DAP) basis, Wang Jie, its Calgary-based
general representative for Americas procurement and trading,
told Reuters.
An FOB contract normally allows buyers to re-sell cargoes,
affording more flexibility to redirect them, depending on market
conditions.
Rongsheng also buys Canadian crude from suppliers such as
Cenovus Energy ( CVE ), Canadian Natural Resources ( CNQ ),
ConocoPhillips ( COP ), BP and Shell, Wang said.
Wang, who founded and chaired PetroChina International
Canada Trading, an arm of state oil giant China National
Petroleum Corp (CNPC), joined Rongsheng in January, his LinkedIn
profile shows.
He was previously at Singapore-based Essence Energy.
"The company has always attached importance to the global
talent layout and continues to optimise team configuration
according to the needs of business development," Rongsheng said
in an email to Reuters.