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Zhuhai Zhenrong

Zhuhai Zhenrong

Industry: 
Energy
Country: 
China
Sources: 

Zhuhai Zhenrong is a state-owned enterprise. 

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"China's state-run oil trader, Zhuhai Zhenrong Corp, has renewed a pact with National Iranian Oil Company to buy the same volume of Iranian crude supplies in 2015 as it did this year, two industry officials with direct knowledge of the deal said on Friday. Zhuhai Zhenrong will lift a total of 12 million tonnes, or about 240,000 barrels per day (bpd) of Iranian crude, next year. 'We have finalised the numbers, no change from this year,' said one Chinese trading official, who asked not to be identified as the official is not authorised to speak to the media. Zhenrong, an affiliate of China's defence authorities in the 1990s, acts largely as an import agent for China Petroleum and Chemical Corp, or Sinopec , whose refineries process Iranian crude." (Reuters, "China trader renews deal with Iran for 240,000 bpd crude oil in 2015," 12/12/14)

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 "Chinese state-run oil trader Zhuhai Zhenrong Corp has entered a one-year supply agreement to buy Iranian South Pars condensate, in its first term contract for the light crude oil with the Middle East supplier, according to industry officials. Under the deal, the trader will lift two million barrels of condensate a month from the National Iranian Oil Company (NIOC), according to three sources with knowledge of the agreement... Zhuhai Zhenrong's condensate agreement - equivalent to about 67,000 barrels per day (bpd) and expected to begin later this year - will be parallel to a contract between state Chinese refiner Sinopec Corp and NIOC for 70,000 bpd South Pars oil under a long-term deal. Zhuhai Zhenrong would supply the Iranian light oil to Dragon Aromatics, an independently-run petrochemicals producer with a 100,000-bpd condensate splitter at its plant in the southeastern city of Zhangzhou." (Reuters, China trader, Iran in 1-yr South Pars condensate deal - sources, 6/12/13)

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Zhuhai Zhenrong is the parent company of Tianjin Zhenrong International Energy Corp.

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“China's March crude oil imports from Iran rose more than a third from a year ago, keeping imports in the first three months of 2014 close to the levels seen before Western sanctions were applied more than two years ago. China's intake from Iran in March rose 36.1 percent to 555,182 barrels per day (bpd), customs data showed on Monday, in keeping with the rise in exports from the OPEC member after the November nuclear deal that eased some sanctions on Tehran…China's imports have been higher this year largely due to new volumes of condensate, a super light crude, and also because top refiner Sinopec Corp may have boosted liftings under a long-term agreement, traders said. China's oil arrivals from Iran in the first quarter of this year were at 557,605 bpd, up 36.2 percent from a year ago. On a daily basis, China's March imports of Iranian oil climbed 0.5 percent from February's 552,613 bpd. Ship loading data seen last week by Reuters shows that China's crude and condensate intake this month - based on March tanker schedules - should be around 562,000 bpd before jumping to more than 600,000 bpd in May…China may have trouble holding down its own Iranian oil imports in 2014 as state-run trader Zhuhai Zhenrong Corp is negotiating a new condensate contract to supply an independent petrochemical firm Dragon Aromatics, Reuters has reported. Dragon Aromatics has since the second half of 2013 been buying condensate from Iran as feedstock." (Reuters, “China's March crude imports from Iran up 36.1 pct y/y, 4/21/14)

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“The gasoline that is being imported into Iran is highly pollutant, according to Iran's Tasnim news agency. The agency reported on April 16 that the four elements in gasoline (benzene, sulfur, aromatic, and olefin) - have a pollution level above standard…Iranian government has never announced the source of imported gasoline, but Chinese state-trader Zhuhai Zhenrong Corp, which was sanctioned by Washington in early 2012 for supplying gasoline to Iran, reportedly has maintained gasoline export to the Islamic Republic.” (Trend, “Iran imports highly pollutant gasoline,” 4/16/14)

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"China's February crude oil imports from Iran rose 6 percent from a year ago to 552,613 barrels per day (bpd), customs data showed on Friday, keeping imports in 2014 close to levels before Western sanctions were applied more than two years ago…China's Iranian oil imports have been rising in part due to condensate shipments by independently-run petrochemical firm, Dragon Aromatics, which has since the second half of 2013 been buying condensate from Iran as feedstock. For 2014, China may have trouble holding down its Iranian oil imports as state-run trader Zhuhai Zhenrong Corp is negotiating a new condensate contract.” (Reuters, “China's Feb crude imports from Iran rise 6 pct y/y,” 3/21/14)

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“China's daily Iranian crude oil imports fell 2.2 percent to 428,840 barrels per day in 2013, a smaller-than-expected drop than previously forecast due to imports of condensate by an independent firm…For 2014, China may buy more Iranian oil as state-run trader Zhuhai Zhenrong Corp is negotiating a condensate contract that could raise imports to levels unseen since tough Western sanctions were imposed in 2012.” (Reuters, “China's Iranian crude imports drop 2.2 pct in 2013,” 1/21/14)

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"China may buy more Iranian oil next year as a state trader is negotiating a new light crude contract that could raise imports from Tehran to levels not seen since tough Western sanctions were imposed in 2012, running the risk of upsetting Washington…industry sources say Chinese state-trader Zhuhai Zhenrong Corp, which was sanctioned by Washington in early 2012 for supplying gasoline to Iran, is in talks with the National Iranian Oil Company (NIOC) for a new contract for condensate. However, it was not clear how much of the light crude would be imported through any new term deal. Zhenrong or others could also continue buying condensate through spot deals…Zhenrong, an affiliate of China's defense authorities in the 1990s, acts largely as an import agent for China Petroleum and Chemical Corp, or Sinopec, whose refineries process Iranian crude. Zhenrong also buys a small amount for a PetroChina-controlled refinery. The new condensate contract would be through a subsidiary, Tianjin Zhenrong International Energy Corp, for delivery to independent petrochemical plant Dragon Aromatics in southeast China's Fujian province, the sources said. Dragon Aromatics since around August has been buying from Zhenrong on a spot basis about 66,000 bpd of condensate produced from Iran's giant South Pars gas project. A Zhenrong spokesperson declined to comment on any negotiations and whether they ran the risk of putting the company under pressure from Washington…Of the total for next year, Zhuhai Zhenrong is set to renew its annual supply deal at around 240,000 bpd, not including any new deal for condensate…Zhenrong was set up around 1995 to take oil from Tehran in payment for arms Beijing supplied during the 1980-88 Iran-Iraq war. It has been a commercial state-run enterprise since 1998." (Reuters, "Exclusive: China may raise Iran oil imports with new contract: sources," 12/31/13)

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"A gap in U.S. law has allowed China to import nearly $500 million of additional oil products from Iran this year while avoiding U.S. sanctions, demonstrating Washington's challenge in designing effective measures to target Tehran.The Chinese imports pose a delicate issue for the U.S., which is trying to curb Iran's nuclear ambitions through sanctions without harming relations with fast-growing Asian countries that depend on Iranian oil…he latest twist stems from a gap in the sanctions law: When discussing exemptions, it mentions only crude oil, not fuel oil, a byproduct of refining crude into more expensive products such as diesel and gasoline. While fuel oil is significantly less valuable than other refined fuels, some Chinese refineries can process it into more valuable fuels. China imported 5.4 million barrels of Iranian fuel oil valued at $495 million in the first seven months of 2013, according to Chinese customs data, up from less than $1 million in all of 2012. China has purchased more Iranian fuel oil this year than in the past four years combined, according to the data…Iran's fuel oil is purchased by Chinese trading companies such as Zhuhai Zhenrong Co., said the people familiar with Iran's exports. Zhuhai Zhenrong already is China's biggest importer of Iranian crude and has been sanctioned by the U.S. for exporting gasoline to Iran. The traders then resell the product to small, independent Chinese refineries, the people said. A Zhuhai Zhenrong spokeswoman said she was unaware of Iranian imports and didn't comment further." (Wall Street Jounral, "Sanctions Gap Allows China to Import Iranian Oil," 10/21/13)

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"China's state-run Zhuhai Zhenrong Corp, the firm that started Beijing's Iran oil business, expects to maintain its crude oil contract with Tehran at a steady volume for 2013, unfazed by tightening Western sanctions, trading officials told Reuters... Zhuhai Zhenrong, sanctioned early this year by Washington for supplying gasoline to Iran, would keep importing around 230,000 barrels of Iranian crude each day in 2013, a contract volume that has barely changed over the past decade. This figure would be just over half the total imports this year into China. Beijing is Iran's top oil buyer and trading partner, buying almost half of Terhan's total exports of crude... 'Since Zhenrong is already on the blacklist, it fears no more political pressure (to cut),' said a senior Chinese oil trader with direct knowledge of Zhenrong's operations. The ultimate customer of Zhenrong's Iranian crude supply is state refining giant Sinopec Corp, which has yet to conclude a separate contract with the National Iranian Oil Company." (Reuters, "China's Zhenrong to maintain Iran oil imports for 2013," 12/21/12)

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"Some firms on the list already are the targets of federal sanctions. They include the state-run Petroleos de Venezuela, the Belorussian firm Belarusneft, China's Zhuhai Zhenrong Co., Singapore's FAL Oil Co. and Kuo Oil, and Switzerland-based Naftiran. Others, including Angola's Sonangol, reportedly have pulled out of Iran in response to international sanctions." (The Baltimore Sun, "22 companies are listed for alleged Iran ties, sanctions," 9/17/2012)

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"Iran's fuel oil exports fell nearly 50 percent from May to June, according to industry sources, adding to declines earlier this year and to the strain on Tehran's finances as sanctions have hit its oil trade…Western sanctions do not specifically ban the purchase of Iran's fuel oil but instead target the financing and shipping insurance needed to buy and transport Iranian cargoes, creating difficulties for would-be customers that effectively have slashed trade with Iran.

No one is willing to insure any Iran-related oil cargo,' a Gulf-based trader said. 'Plus the trade has to be in any other currency than the dollar.'

More than half of Iran's June fuel oil exports were lifted by oil trader Vitol. Syrian refiner Sytrol received around 75,000 tonnes, while China's ZhenRong lifted around 83,000 tonnes, according to the data." (Reuters, "Iran fuel oil exports plummet in June-industry data," 7/12/12)

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"Most of the oil that goes from Iran to China is handled by the Unipec trading arm of Sinopec, China’s second-largest oil company, and through another trading company called Zhuhai Zhenrong, the oil industry executives said. The trade is worth as much as $20 billion-$30 billion annually according to industry estimates, but a share of it is in barter form. Zhuhai Zhenrong, for example, pays Iran for its oil by providing services such as drilling, these people add." (Financial Times, "Iran Accepts Renminbi for Crude Oil," 5/8/2012)

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"Iran is helping its ally Syria defy Western sanctions by providing a vessel to ship Syrian oil to a state-run company in China, potentially giving the government of President Bashar al-Assad a financial boost worth an estimated $80 million.The source named the Chinese buyer as Zhuhai Zhenrong Corp, a state-run company hit by U.S. sanctions in January.  A Zhuhai Zhenrong spokeswoman said: "I've never heard about this." She declined further comment." (Reuters, "Iran helps Syria ship oil to China,"  3/30/12) 

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"European trader Vitol and China's Tianbao have both chartered tankers to lift fuel oil from Iran, the first such fixtures seen in nearly a month, traders and shipbrokers said Tuesday.  Vitol has chartered Olympic Spirit II to lift 80,000 metric tons of fuel oil from Bandar Mahshahr on March 27, while Tianbao has chartered Alberta to take 80,000 tons of fuel oil from Bandar Mahshahr April 10, in what is the first fixture for April loading reported by shipbrokers, they said.  Tianbao is a unit of Chinese state-run trader Zhuhai Zhenrong, which was placed under sanctions by the U.S. in January for allegedly selling gasoline to Tehran." (Wall Street Journal, "Vitol, Tianbao Plan To Lift Iran Fuel-Oil- Traders, Brokers" 3/27/12)

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"The US state department announced late on Thursday that penalties would be imposed on China’s Zhuhai Zhenrong, the Singapore-based oil trader Kuo Oil, and the United Arab Emirates-based independent oil trader FAL... A spokesperson for Zhuhai Zhenrong said the company had not sold gasoline to Iran. 'We’ve never exported a barrel, not even a wee bit of refined fuel to Iran,' said Zheng Mei, director of the public affairs department... Zhuhai Zhenrong is a state-owned oil trader based in Southern China. The company has a special mandate from the State Council to do crude trades that offset military trade debt with Middle Eastern countries, according to its website... Ms Zheng, the spokesperson for Zhenrong, said the company would continue buying Iranian crude. 'Zhuhai Zhenrong’s trade with Iran is carried out under the two governments. The trade accords with international law and Chinese laws and regulations,' she said. 'What we’ve signed with Iran are long-term contracts and we import around 12m tonnes of crude from Iran each year,' Ms Zheng said. 'We’ve never exported gasoline to Iran. This is out of thin air!' The US state department said Zhuhai Zhenrong is Iran’s largest supplier of refined oil products, brokering sales of gasoline worth more than $500m between July 2010 and January 2011. The sanctions are likely to have little immediate impact on Zhenrong because the company does very little, if any, business in the US.(Financial Times, "US sanctions Chinese oil trader," 1/13/2012)

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"Open sources reported that Zhuhai Zhenrong sold gasoline to Iran in 2010." (U.S. Government Accountability Office, Report: "Firms Reported in Open Sources to Have Sold Iran Refined Petroleum Products between January 1, 2009 and June," September 3, 2010)

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"China's state-run Zhuhai Zhenrong, which started buying oil from Iran more than a decade ago and was among the first buyer to heed Tehran's call to pay in euro instead of U.S. dollars, has extended its agreement with National Iranian Oil Co (NIOC) to import 240,000 bpd of crude for 2009." (Reuters, "FACTBOX-Iran's major oil customers, energy customers," 6/5/09)

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"Chinese state oil trader Zhuhai Zhenrong Corporation has agreed with National Iranian Oil Company to buy 240,000 barrels per day of Iranian crude this year, the same amount as last year." (Upstream Online, Zhuhai Zhenron buys Iranian Crude, 1/21/11) 

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"Russian oil giant LUKOIL has resumed gasoline sales into Iran together with China's state-run firm Zhuhai Zhenrong, even as the United States urges the global community to be tough with Tehran... Chinese companies have delivered about half of Iran's gasoline imports in recent months. State-run Zhenrong is the single largest lifter of Iranian crude oil." (Reuters, Lukoil resumes gasoline supply to Iran, 8/11/10)

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Zhuhai Zhenrong, one of four government-backed crude oil importers in China, has agreed to buy more than 110 million tons of liquefied natural gas (LNG) from Iran over 25 years, which could be the largest LNG purchase deal in the world.The company signed a framework agreement earlier this month to buy 2.5 million tons of LNG annually from Iran starting in 2008, the company announced in a statement posted on the website of the State Assets Supervision and Administration Commission on March 17. (China Chemical Reporter, China signs LNG contract with Iran, 2/24/04)

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