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China adds more domestic flights, supporting jet demand

  • : Oil products
  • 20/10/28

China is planning to operate almost 20pc more domestic flights in the next five months as the government looks to support the economy and compensate for a collapse in international travel. But total flight numbers are still likely to be down on last year, according to Argus calculations.

China's civil aviation bureau and airlines have scheduled an average of 84,634 domestic passenger flights a week for the coming winter and spring season, which runs from 25 October to 27 March 2021. The figures exclude flights to and from Hong Kong, Macau and Taiwan.

The daily average of 12,090 domestic passenger flights is up by 19.8pc from the year-earlier period. The number of scheduled cargo flights has also increased significantly, up by 38.8pc to 2,101 a week in the same comparison.

There are another 2,984 flights a week scheduled between mainland China and Hong Kong, Macau and Taiwan, down by 23.2pc from the 2019-20 season.

The planned increase in domestic flights is in line with the Chinese government's new ‘dual circulation' economic development model, which aims to stimulate domestic consumption amid global economic weakness and uncertainty over trade. China's domestic air travel recovered to almost 90pc of year-earlier levels during the country's golden week holiday in early October.

The international passenger flight schedule has been slashed by 96.8pc from a year earlier to just 592 flights a week. The plans could be adjusted further at any time based on quarantine requirements.

But the number of scheduled international cargo flights by domestic and overseas carriers has more than doubled to 4,498 a week, up by 128.6pc from 2019-20. Cargo flight activity has risen sharply since the start of the Covid-19 pandemic, to meet increased demand for medical supplies and other necessities amid the collapse in international passenger travel.

China's domestic jet fuel demand recovery has accelerated since May as the economy recovers from Covid-19 shutdowns early in the year. But exports hit fresh nine-year lows in September while imports are down on a year earlier.

China's winter-spring flight planflights per week
2020/212019/20*Change
Domestic passenger84,63470,64613,988
Domestic cargo2,1011,513588
Hong Kong, Macau, Taiwan2,9843,885-901
International passenger59218,500-17,908
International cargo4,4981,9682,530
Total94,80996,512-1,703
Winter-spring period covers 25 October 2020 to 27 March 2021
*calculated based on percentage changes

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25/04/24

Taiwan’s CPC buys Vincent crude ahead of CDU turnaround

Taiwan’s CPC buys Vincent crude ahead of CDU turnaround

Singapore, 24 April (Argus) — Taiwanese state-controlled refiner CPC has purchased a rare cargo of Australian heavy sweet Vincent crude, ahead of a June crude distillation unit (CDU) turnaround that is expected to tighten blendstock component availability at its refinery. CPC recently bought the end-May loading Vincent from Japanese trading firm Mitsui at around a $5-5.50/bl premium to North Sea Dated, traders said. Vincent is usually sold in volumes of 550,000 bl. An upcoming CDU maintenance at a CPC refinery in June, expected to last 1-2 months, will limit production of other blendstock components needed for fuel oil production, market sources told Argus . It is unclear which refinery — the 200,000 b/d Taoyuan or 400,000 b/d Dalin — is having the maintenance. Production constraints, arising from the upcoming turnaround, may have prompted CPC to seek alternative blendstocks like Vincent to help meet its fuel oil supply obligations during this period. CPC is responsible for supplying the majority of Taiwan's bunker fuel at domestic ports. The Vincent deal marks CPC's first crude purchase from Australia since November 2023, when it received heavy sweet Van Gogh crude, data from oil analytics firm Vortexa show. Van Gogh is similar in quality to Vincent. The last time CPC took Vincent was in March 2023. CPC has mainly relied on US light sweet WTI in the past year, supplemented by medium sour Saudi Arab Light and Abu Dhabi Upper Zakum. Vincent and Van Gogh, as well as Australian heavy sweet Pyrenees, are valued as blendstocks for very low-sulphur fuel oil production in the Singapore strait region. These grades' heavier density relative to other sweet crude grades make them less economical for refining, and better suited for direct use in fuel oil blending. By Asill Bardh and Reena Nathan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pemex Olmeca refinery exports first diesel cargo


25/04/23
25/04/23

Pemex Olmeca refinery exports first diesel cargo

Mexico City, 23 April (Argus) — Mexico exported its first ultra-low sulphur diesel (ULSD) cargo from state-owned Pemex's 340,000 b/d Olmeca refinery, according to vessel tracking data and market sources. The MR tanker Torm Singapore loaded 300,000 bl of ULSD at the Dos Bocas port on 28 March. It discharged about 40,000 bl at Seaport Canaveral near Orlando, Florida, Kpler data shows. The remaining 260,000 bl were discharged at the Yabucoa port in Puerto Rico. The Olmeca refinery began construction during the former administration of president Andres Manuel Lopez Obrador and was symbolically inaugurated in 2022, but has faced multiple challenges and start-up woes since. Its initial construction costs have doubled to over $17bn. Olmeca started producing ULSD last year , using a distillate feedstock produced at the 190,000 b/d Madero refinery, as Olmeca's crude distillation unit has faced multiple delays. The refinery is still in a testing phase in 2025. It processed about 6,800 b/d of crude in February, Pemex latest data show. Olmeca was originally touted as a key component of the government's desired road fuels self-sufficiency policy. But Pemex's trading arm PMI has also studied lucrative ULSD export opportunities in Florida, the Caribbean and Central America, market sources told Argus . These areas depend heavily on imported diesel and face infrastructure constraints. Earlier in March, Pemex shipped internally about 280,000 bl of gasoline from Olmeca to ports in Veracruz, according to Kpler Data. Olmeca's most viable domestic fuel distribution routes remain tank trucks and vessels, which could then discharge in other terminals on Mexico's east coast. Olmeca's limited domestic fuel sales are made directly to area fuel retailers from southern Veracruz and Tabasco, who send trucks directly to the terminal for loading, according to market sources. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bio-bunker sales in Rotterdam down in 1Q


25/04/23
25/04/23

Bio-bunker sales in Rotterdam down in 1Q

London, 23 April (Argus) — Sales of marine biodiesel blends in Rotterdam fell for the third consecutive quarter in January-March as demand shifted east of Suez. Port data for the first quarter of 2025 show marine biodiesel blend sales declined by 12pc compared with the previous three months and by 60pc compared with the same period last year. The decline was underpinned by lower prices in Singapore. B24 dob Singapore — a blend comprising very low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome) — averaged a $36/t discount against B30 advanced fatty acid methyl ester (Fame) 0 dob ARA in the first quarter, and a $129.74/t discount against B30 Ucome dob ARA. This price dynamic made Singapore an attractive bunker hub for those shipowners opting to use biodiesel blends to help their customers meet sustainability goals. It also attracted demand from shipowners bound by the FuelEU maritime regulations introduced in January this year. The regulations require a reduction in greenhouse gas (GHG) emissions from ships travelling into, out of and within EU waters, but energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of the rules. A pooling mechanism within the regulations also allows vessels operating on the east-west route to utilise compliance generated from marine biodiesel blends bunkered in Singapore across other ships that operate solely in Europe. While biodiesel bunker sales in Rotterdam fell, biomethanol sales at the port soared almost sixfold in January-March compared with a year earlier. The sharp rise in demand reflects the rollout of FuelEU Maritime , higher mandates in Europe for the use of renewables in transport this year and changes to regulations on the carryover of renewable fuels tickets in Germany and the Netherlands . Sales of conventional bunker fuels in Rotterdam edged up by a more modest 1pc on the quarter and by 7pc on the year. Sales of high-sulphur fuel oil (HSFO) overtook those of very low sulphur fuel oil (VLSFO), reversing the trend of the previous quarter despite the imminent addition of the Mediterranean Sea as an Emission Control Area (ECA). Ships without scrubbers that sail through ECA zones must use fuels with a maximum sulphur content of 0.1pc, such as marine gasoil (MGO) and ultra low sulphur fuiel oil (ULSFO). LNG bunker sales in Rotterdam fell by the 13pc on the quarter in January-March, reflecting a price rally at the Dutch TTF gas hub in late January and early February. The Argus northwest Europe LNG bunker price stood at a two-year high of €64.35/MWh on 6 February. LNG bunker sales were still higher than in the first quarter last year, which likely stems from the introduction of the FuelEU Maritime regulations. By Hussein Al-Khalisy, Natália Coelho, Gabriel Tassi Lara, Evelina Lungu and Cerys Edwards. Rotterdam bunker sales t Fuel 1Q25 4Q24 1Q24 q-o-q % y-o-y % VLSFO 789,218 810,831 680,782 -2.7 15.9 ULSFO 187,031 193,567 176,797 -3.4 5.8 HSFO 829,197 780,437 818,028 6.2 1.4 MGO & MDO 393,071 395,903 383,409 -0.7 2.5 Conventional total 2,198,517 2,180,738 2,059,016 0.8 7 Biofuel blends 104,037 118,201 262,634 -12 -60.4 LNG (m³) 230,129 263,068 215,247 -12.5 6.9 biomethanol 5,490 930 0 490.3 na Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India, Saudi Arabia to establish two Indian refineries


25/04/23
25/04/23

India, Saudi Arabia to establish two Indian refineries

Mumbai, 23 April (Argus) — India and Saudi Arabia will collaborate on establishing two refineries and petrochemical projects in India, according to an Indian government release today. Indian prime minister Narendra Modi met Saudi prime minister Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 had pledged to invest $100bn in India in multiple areas including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health. The government did not disclose further details, but industry sources said that one of the two refineries might be Indian state-run BPCL's planned refinery in Andhra Pradesh , which Saudi Arabia's state-controlled Saudi Aramco may join as an investor. The other one might be a refinery in Gujarat, under a partnership with Indian upstream firm ONGC and Aramco. But plans for a 1.2mn b/d refinery in Ratnagiri in collaboration with IOC and Adnoc have mostly been ruled out, because of logistical issues relating to the size of the refinery and land acquisition hurdles, among others. Saudi Arabia is the third-largest crude supplier to India, making up 15pc or 712,000 b/d of India's total imports in January-March, data from oil analytics firm Vortexa show. Saudi Arabia's share in the Indian market has declined, after Russia became India's biggest supplier following its war with Ukraine. Modi's trip to the Middle East comes close on the heels of US vice president JD Vance's visit to India on 21 April. The visit included negotiations for an India-US bilateral trade agreement and efforts towards enhancing co-operation in energy, defence, strategic technologies and other areas. JD Vance in India Vance said on 22 April at his speech in Jaipur that India will benefit from US energy exports and said the US wants to help India explore its own considerable natural resources, including its offshore natural gas reserves and critical mineral supplies. US president Donald Trump has pushed India to step up its purchases of US crude and LNG. Crude imports from the US doubled on the month to 289,000 b/d in March, of which 65,000 b/d was Canadian Cold Lake crude, according to trade analytics firm Kpler. The visits come at a time when geopolitical and trade uncertainty has risen, because of Trump's volatile tariff policies. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

FERC commissioner Phillips resigns from agency


25/04/22
25/04/22

FERC commissioner Phillips resigns from agency

Washington, 22 April (Argus) — Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets. Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden. Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court. The White House did not respond to a question on whether it had pressured Phillips to resign. FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House. Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said. Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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