China's CNPC gets two Venezuelan jet fuel cargoes in July -document

HOUSTON Mon Aug 25, 2014 4:52pm EDT

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HOUSTON Aug 25 (Reuters) - China Oil Corp, a unit of state-run CNPC, in July received two 240,000-barrel cargoes of jet fuel from Petroleos de Venezuela, and the shipments were sent to the United States, according to an internal PDVSA document seen by Reuters on Monday.

China National Petroleum Corporation (CNPC) and its trading arm Petrochina normally take cargoes of Venezuelan fuels such as diesel, fuel oil and jet fuel. It either uses those cargoes for its own needs or resells them directly to refining companies.

China receives the Venezuelan oil as payment for loans made to Venezuela's government that date back to 2007.

China Oil received the first jet fuel cargo on July 4 on the tanker Pretty Scene with the island of Puerto Rico as its destination. The second one was loaded on July 29 on the tanker Walnut Express with Florida as its destination.

PDVSA normally offers four to six cargoes of jet fuel and ultra low-sulfur diesel (ULSD) each month on the open market. But recently its exports of fuels have declined as it works to meet growing domestic demand for diesel and fulfill delivery quotas to China.

The document also shows that PDVSA did not directly sell any ULSD cargo to the international market in July, as happened in June. But it sent two cargoes from its eastern terminals to its 645,000-barrel-per-day Amuay refinery on Venezuela's western coast.

Domestic demand for diesel in Venezuela has been growing in recent months while the government increases thermoelectrical generation, instead of hydroelectrical.

PDVSA also sent from its eastern terminals in July seven cargoes of heavy Merey crude to Phillips 66's terminal in Freeport, five crude cargoes to Cuba, three light virgin naphtha cargoes to Brazil, one crude cargo to Jamaica's Petrojam, another to Dominican Republic's Refidomsa and one crude cargo to Nicaragua. (Reporting by Marianna Parraga; Editing by Terry Wade and Jonathan Oatis)

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