The Rizhao Shihua terminal sanctions have forced at least three very large crude carriers to redirect from Rizhao, disrupting near-term crude flows and threatening refinery runs; the move affects a facility that handles nearly 10% of China’s oil imports, prompting rapid rerouting to Ningbo, Tianjin and Zhoushan.
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Three VLCCs rerouted: Spherical, New Vista and Habshan changed destinations after the US blacklisted Rizhao Shihua.
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The terminal supplies pipelines to multiple Sinopec refineries; analysts estimate short-term refinery run cuts up to 250,000 barrels per day.
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Data shows Rizhao handled about 1 million barrels per day last year, with 189,000 barrels traced to Iran (sources: Bloomberg, Energy Aspects, Vortexa).
Rizhao Shihua terminal sanctions reshape China crude flows, hit Sinopec supply chains — read analysis and next steps for refineries and shipping.
Author: COINOTAG | Published: 2025-10-15 | Updated: 2025-10-15
How do the Rizhao Shihua terminal sanctions affect China’s oil supply?
Rizhao Shihua terminal sanctions immediately disrupted planned crude deliveries to China, forcing at least three very large crude carriers to divert and prompting short-term reductions in refinery throughput. The facility accounts for nearly 10% of China’s total oil imports and feeds pipelines that supply several key Sinopec refineries.
Which tankers redirected after the sanctions and where are they heading?
Tracking data reviewed by Bloomberg shows three VLCCs — Spherical, New Vista and Habshan — altered course after the US blacklisted the Rizhao Shihua terminal. Spherical, carrying about 2 million barrels of Brazilian crude, and New Vista, with roughly 1.8 million barrels from Abu Dhabi, have been tracked toward Ningbo Zhoushan. Habshan, loaded with about 1.9 million barrels from Africa, has moved toward Tianjin. Other vessels offshore near Shandong either turned off tracking signals or shifted for alternate berths in Zhoushan, Ningbo and Tianjin.
What is the expected impact on Sinopec’s refining network?
The Rizhao Shihua facility connects to multiple refineries across Shandong via long pipelines. Energy Aspects estimated the disruption could cut refinery runs by as much as 250,000 barrels per day. Sinopec’s Luoyang refinery, processing around 200,000 barrels per day, is particularly exposed due to its dependence on pipeline deliveries via Rizhao. Other sites, including Yangzi and Jinling refineries, may face temporary slowdowns as cargoes are rerouted or consolidated onto smaller vessels for inland transfer.
Frequently Asked Questions
How will the Rizhao sanctions affect Sinopec refinery output in the short term?
Short-term impacts are expected to be uneven: some state-run refineries may cut runs as pipelines from Rizhao see reduced inflows, with analysts forecasting up to 250,000 bpd of lost throughput. The effect should moderate as alternative berths and rerouting capacity are secured (sources: Energy Aspects, Bloomberg).
Why did tankers divert from Rizhao and what alternatives exist?
Tankers diverted because the Rizhao Shihua terminal was blacklisted by US authorities for handling shipments linked to Iran. To avoid exposure, ship operators redirected cargos to nearby ports such as Ningbo Zhoushan and Tianjin or planned transshipment to smaller vessels for delivery via the Yangtze River pipeline network.
Key Takeaways
- Immediate rerouting: Three VLCCs altered destinations, reflecting rapid operational responses by traders and shipowners.
- Refining pressure: Disruption could reduce refinery runs by up to 250,000 bpd, with Luoyang refinery among the most affected.
- Temporary adjustment: Analysts expect the overall effect on China’s oil demand to be short-lived as replacement berths and transshipment capacity are arranged.
Conclusion
The US blacklisting of the Rizhao Shihua terminal has altered tanker routes and strained pipeline-fed refinery supply chains, highlighting how geopolitical policy can instantaneously reshape commodity logistics. Reporting by Bloomberg and analysis from Energy Aspects and Vortexa indicate a meaningful but likely temporary disruption to China’s crude flows. COINOTAG will continue monitoring shipping movements, refinery run rates and official data to track recovery timelines and market implications.
