News / Asia

Chinese Tanker Loads Iranian Oil

A Chinese national flag flies in front of COSCO's headquarters in Beijing, August 26, 2010.
A Chinese national flag flies in front of COSCO's headquarters in Beijing, August 26, 2010.
Reuters
A Chinese tanker loaded crude in Iran in March, according to shipping data and an industry official, the first time a China-flagged ship, has transported Iranian crude since EU sanctions imposed last July stopped insurers covering the shipments.

The United States and Europe imposed tough sanctions in 2012 that aim to choke Iran's oil revenue and force the Islamic Republic to halt its disputed nuclear program.

Unable to find insurance for its own vessels because of the sanctions, China has relied mainly on the National Iranian Tanker Company (NITC) to ship Iran's crude to Chinese refineries over the past nine months.

If China has put in place a system of insurance for its own vessels allowing them to participate in the trade again, the country's refineries could boost imports. China is Iran's largest trade partner and biggest oil client, buying around 440,000 barrels per day (bpd) in 2012.

The Chinese-owned supertanker Yuan Yang Hu, with capacity to carry 2 million barrels of crude, called at Iran's Kharg Island on March 20-21 and is en route to China, shipping tracking data showed.

The vessel is owned by Dalian Ocean, a subsidiary of state shipping giant China Ocean Shipping (Group) Company (COSCO).

An official at COSCO's general manager's office said she was unaware of the matter and the company's press official was not available for comment.

The insurance arrangements for the voyage are unclear.  Norwegian marine and energy insurance group Skuld includes the Yuan Yang Hu on the lists of vessels it covers, detailed on its website. Skuld could not be immediately reached for comment.

An industry official with knowledge of the shipment told Reuters that the tanker's insurance and reinsurance had been arranged in China. He was unable to provide more details.

"This is the first Chinese vessel [since the ban]... as one of the lifters got special approval from the authorities to lift Iranian oil on a trial basis,'' said the official, who requested anonymity due to the sensitivity of the matter.  "Insurance is also handled by the Chinese side.''

Iran's fleet has struggled to deliver oil to its biggest buyers China, India and South Korea, all of whom had to switch to Iranian vessels for delivery after the EU sanctions came into place.

China's Iranian imports fell 21 percent in 2012 from 2011 to 440,000 bpd partly due to shipping problems. The fall meant China qualified for an exemption to U.S. sanctions, which require buyers of Iranian crude to continually reduce imports.

Beijing has repeatedly stated its opposition to unilateral sanctions outside of the United Nations, such as those imposed by the United States. But it qualified for an exemption anyway, after the shipping delays and a contract dispute led to the sharp fall in imports.

COSCO's chairman Wei Jiafu told Reuters last July, just weeks after the European insurance ban took effect, that the Chinese government could follow Japan's example and provide insurance for Chinese tankers.

Japan found a way around the EU ban last year when the
government stepped in to provide $7.6 billion in coverage to tankers carrying Iranian crude bound for Japanese ports.
Insurance companies use reinsurers to hedge their risk, and
 the reinsurance market is mostly based in Europe. The EU sanctions prevent those reinsurers from participating in transactions that facilitate Iranian crude exports.

The same problem has also arisen in India for refiners
 seeking insurance for plants that process Iranian crude.

China largest refiner Sinopec processes nearly all the
 Iranian crude imported into the country, which is shipped in by Sinopec's trading arm Unipec and state trader Zhuhai Zhenrong Corp.

Even without any new arrangement on insurance, oil traders
have said deliveries have, since late 2012, "improved significantly'' after NITC deployed old tankers and also took delivery of several new vessels from Chinese shipyards.

In the first two months of 2013, China imported about
 410,000 bpd of Iranian crude, 3 percent more than a year earlier, according to Chinese customs data.

You May Like

Taliban's New Leader Says Jihad Will Continue

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Video Empire State Building Highlights Cecil the Lion

People gathered in streets and rooftops in Manhattan to see the image highlights that covered 33 floors of the building More

World’s Widest Suspension Bridge Being Built Over Bosphorus

Once built, Yavuz Sultan Selim Bridge will span 2 kilometers with about 1.5 kilometers over water, and will be longest suspension bridge in world carrying rail system More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs