China’s Hengli Petrochemical is seeking increased supplies of West African and Middle Eastern crude oil after U.S. sanctions disrupted its access to Iranian oil, highlighting how geopolitical tensions are reshaping global energy trade flows. According to Reuters and MarketScreener, the privately owned refiner has purchased at least 2 million barrels of West African crude for delivery in late June and July while actively pursuing additional cargoes from West Africa and non-Iranian Middle Eastern producers. The move follows sanctions imposed by the U.S. Treasury in April, which accused Hengli of purchasing Iranian oil, allegations the company has denied.
Hengli, which operates a 400,000-barrel-per-day refinery in Dalian, is reportedly seeking to source entirely non-sanctioned crude as it works toward removal from the U.S. sanctions list. Trade sources told Reuters that the company has recently inquired about securing mainstream crude supplies from producers in West Africa and the Middle East, although the process remains challenging because many sellers are cautious about potential secondary sanctions. The company previously stated it would pursue legal avenues to challenge the sanctions while continuing operations using China’s renminbi for transactions.
The shift comes at a time when Chinese independent refiners are facing tighter crude supplies as Iranian exports decline. The Business Times reported that China’s imports of Iranian crude fell to 1.19 million barrels per day in May, the lowest level since September, while falling inventories have reportedly forced Hengli to reduce refinery utilization rates to below 70% in June from more than 80% a month earlier. Analysts note that increased Chinese demand for West African crude could provide support for producers in countries such as Nigeria and Angola, which have faced fluctuating demand from Asian buyers in recent months.
For African oil exporters, Hengli’s search for alternative supplies could create new commercial opportunities as China seeks to diversify sourcing amid evolving geopolitical risks. However, market participants caution that sanctions-related concerns and shifting global trade patterns could complicate long-term supply arrangements. The development underscores how geopolitical tensions are increasingly influencing energy markets, with implications for crude pricing, trade routes, and investment decisions across both Africa and the Middle East.
