GreenergyDaily

Mar. 28, 2025

1. 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, Reuters reported today, citing sources.

2. 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.

3. 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.

4. 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.

5. 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.

6. Rongsheng also buys Canadian crude from suppliers such as Cenovus Energy, Canadian Natural Resources, ConocoPhillips, BP and Shell, Wang said.

7. "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.