Published On 11/6/2026
The Chinese Hengli Petrochemical Company is seeking to diversify its sources of oil supplies by turning to West African and Middle Eastern crudes, after it was included on the US sanctions list due to allegations related to the purchase of Iranian oil.
Six trade sources told Reuters that the company, which denies purchasing Iranian oil, has intensified its inquiries in recent weeks regarding purchasing shipments of non-sanctioned crude oil, as part of efforts to escape the circle of American pressure and secure its operational needs.
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The sources added that Hengli, which was imposed by Washington last April, is looking for alternatives to Iranian crude, and is focusing on supplies coming from West Africa and Middle Eastern countries excluding Iran.
The sources added that Hengli, which is privately owned and operates a refinery with a refining capacity of 400,000 barrels per day in the city of Dalian in northeastern China, recently inquired about purchasing shipments for delivery this June.
According to three sources, the company has already purchased at least two million barrels of West African crude, with shipments scheduled to arrive in China in late June or next July.
Trade sources indicated that Hengli obtaining oil supplies that are not subject to sanctions will not be easy, as many sellers fear being exposed to secondary US sanctions when dealing directly with the company.
The sources said that any potential deals would likely take place through a network of commercial intermediaries, reducing the risk of exposure to US punitive measures.
According to the Chinese Xinhua Agency, the companies targeted by the US sanctions, in addition to the Hengli Petrochemical Refinery in Dalian, include 4 private refineries: Shandong Jincheng Petrochemical, Hebei Xinhai Chemical Group, Shouguang Luqing Petrochemical, and Shandong Xingxing Chemical.
