China’s Hengli Cuts Refinery Operations After Cancelling West African Crude Purchases
China’s Hengli Petrochemical has cancelled crude oil purchases, including cargoes from West Africa, and reduced refinery operations as the company adjusts its procurement strategy amid changing market conditions.
The company cancelled purchases involving several million barrels of crude oil, including around 2 million barrels of West African crude, after previously securing supplies to support its refining operations in China.
The move comes as Hengli reviews its crude supply strategy following increased pressure on its procurement activities and changes in global oil trading conditions.
The company had expanded purchases from alternative suppliers, including West African and Middle Eastern producers, as it sought to diversify its feedstock sources.
The cancellations have affected operations at Hengli’s large-scale refinery in Dalian, where processing rates have been reduced as the company manages crude inventories and adjusts production levels.
The development highlights the sensitivity of West African crude exporters to changes in Asian refinery demand.
China is one of the world’s largest oil importers, and shifts in purchasing patterns from major refiners can influence global crude flows, pricing and market conditions.
The impact on African producers will depend on how quickly alternative buyers absorb available cargoes and how Chinese refinery demand develops in the coming months.
Hengli has not provided detailed public explanations for the cancelled purchases, leaving market participants to monitor the company’s future procurement strategy and its impact on international crude markets.
