THE government issued its first batch of crude oil import quotas for 2019 yesterday at a lower volume than for the same batch a year ago though expectations are for the volumes to climb later this year.

The Ministry of Commerce granted quotas totalling 89.84 million tons to 58 companies in its first allowances for 2019, according to four sources with direct knowledge of the matter and documents seen yesterday.

This is down from the 121.32 million tons issued in the first batch of allowances for 2018, although the sources said China may increase the overall volume for 2019 in a second batch of quotas later this year.

“The market, in general, does not have a upbeat outlook for imports. I think the drop in quota could likely mean easing growth in China’s crude imports in the first half of the year,” said Zhou Guoxia, a crude analyst with consultants JLC.

One of the four sources, who works for a private Chinese refiner, said they received about a third of its annual quota in the first batch and expects to get the remainder in a second batch which China usually issues around September.

Dalian Hengli Petrochemical and Zhejiang Petrochemical, which are starting up their new refineries in 2019, have each received quotas of 4 million tons, according to the documents.(SD-Agencies)