China's Cnooc has begun importing condensate from Australia to Huizhou, signaling a potential shift in trade flows as producers worldwide attempt to safeguard supplies against shipping disruptions in the Middle East, shipping sources said on Wednesday.
Industry sources noted that Cnooc chartered a 75,000 metric ton condensate cargo to discharge in Huizhou. The cargo, hauled by vessel Torm Gwyneth, will be lifted on April 13-15 from Dampier, Australia, according to sources.
Although it is not unusual for Cnooc to import condensate from Australia, sources noted it is mostly for trading purposes. The refiner has a 5.3% participating interest in the North West Shelf Project near Dampier and operated by Woodside Energy.
The move to ship Australian condensate to Huizhou is the first in six years. Iran has long been the city's top supplier in the limited condensate trades observed previously. Most Australian condensate goes to South Korea, Japan and Indonesia, according to shipping data from Vortexa.
The move is likely caused by a naphtha shortage, as supplies from the main exporting region of the Middle East have declined sharply due to geopolitical turmoil, sources said. Cnooc operates a condensate splitter in its petrochemical complex in Daya Bay, Huizhou, processing both condensate and naphtha feedstocks. Condensate, typically found in gas deposits, shares a similar quality with light crude oil and can be processed through splitters to yield high-value naphtha, gas oil and jet fuel.
The potential shift towards Australian condensate may be temporary, however, with the Trump administration lifting sanctions on Iranian oil at sea for 30 days on Friday, although producers in Japan and South Korea have been restricted by payment issues surrounding Iranian cargoes.
"Ultimately, Iranian cargoes could still be snapped up by China and India," said an industry source in Asia.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Yiwen Ju, yju@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com
(END) Dow Jones Newswires
March 25, 2026 06:10 ET (10:10 GMT)
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