China Aviation Oil seeks Nov jet fuel deliveries to China in a rare move, sources say (updated)

China Aviation Oil (Singapore)

28/10/2024 07:18

(Adds further details and quotes)
       SINGAPORE, Oct 28 (Reuters) - China Aviation Oil
 CNAO.SI , a subsidiary of state-owned China National Aviation
Fuel Group, is seeking to buy two cargoes of jet fuel for
November delivery into Shanghai and Huangpu via tenders in a
rare move, four sources with knowledge of the matter said on
Monday. 
    CAO is seeking one 30,000 metric ton cargo for delivery on
Nov. 7-11 to Shanghai and one 25,000 ton cargo for delivery on
Nov. 28-Dec. 4 to Huangpu. 
    The tender closes at 3 p.m. (0700 GMT) on Oct. 28, with
same-day validity. 
    The company did not immediately respond to a Reuters request
for comment. 
    It has been years since CAO last imported jet fuel for
China, one of the sources said. 
    CAO is the key supplier of imported jet fuel to China's
civil aviation industry, according to the company's website. 
    This buying interest probably stemmed from tighter fuel
export quota allowance for the fourth quarter, a second source
said, adding that these cargoes are likely to end up in bonded
storage tanks for the refuelling of international flights.
    Beijing allocated around 8 million tons of export quotas for
refined fuels in its third batch of issuance late last month,
lower compared with last year's third batch of 12 million tons.
    Out of the 8 million tons, around 1.53 million tons are
allocated for the trade processing route - where aviation fuel
for the refuelling of international flights fall under. 
    
    

 (Reporting by Trixie Yap and Florence Tan; Editing by Tom Hogue
and Mrigank Dhaniwala)
 ((trixie.yap@thomsonreuters.com;))