China boosts diesel exports to four-year high as local demand slows

China raised its net diesel exports to the highest level in four years as domestic demand trailed output growth amid a slowing economy.

Overseas sales of the fuel in the world’s largest energy consumer exceeded imports by about 440,200 metric tons in June, according to data e-mailed by the General Administration of Customs in Beijing on Monday. That’s the highest since May 2010.

“China is expected to export 300,000 to 400,000 tons of diesel a month regularly as domestic production grows faster than demand,” said Chen Li, an analyst with ICIS-C1 Energy. China’s diesel demand is estimated to grow 0.3% to 1% this year, while output will expand about 1%, the Shanghai-based consultant said last month.

The nation may export a record 3 million tons of the fuel this year, exceeding the previous high of 2.87 million tons in 2010, ICIS-C1 said. China Petroleum & Chemical Corp.’s Tianjin refinery got a new diesel export quota this year, according to ICIS-C1.

China’s imports of fuel oil, used as refinery feedstock and to power ships, fell 31% from a year ago to 1.4 million tons in June, the second-lowest this year. Purchases in May were 1.13 million, the lowest since at least 2003. Imports declined 32% to 9.8 million tons in the first half.

The nation’s pipeline natural gas imports rose to a record high for a second month in June as supplies from Myanmar continued to increase, today’s data show. Imports were at 2.1 million tons last month.