GreenergyDaily

Jun. 12, 2026

China's Hengli Petrochemical, which was sanctioned by the U.S. for allegedly purchasing Iranian oil, is seeking alternative mainstream oil supplies as the refiner looks to get off the U.S. blacklist.

The privately owned refiner has recently bought at least 2 million barrels of West African crude, according to Reuters. The company is seeking to source entirely non-sanctioned oil and has recently inquired about cargoes of West African and non-Iranian Middle Eastern crude for delivery from June onward.

Hengli said in late April that it would pursue legal avenues to seek removal from the U.S. sanctions list. The company also said it holds sufficient crude inventories to support at least three months of processing and would continue purchasing oil using the Chinese yuan.

Several trade sources said that supplying Hengli with non-sanctioned crude would be complicated, as sellers are reluctant to risk exposure to potential U.S. secondary sanctions, meaning transactions would likely be conducted through a chain of middlemen.

Traders said Hengli had been heavily reliant on Iranian crude since late 2024 and had also purchased Russian oil. Falling crude inventories have forced the company to cut its June processing rates to slightly below 70%, down from just over 80% last month.