Hengli Petrochemical, one of China’s largest private oil refiners, is increasing purchases of West African crude as it seeks to reduce exposure to sanctioned oil supplies following U.S. penalties imposed earlier this year.

The company has secured at least 2 million barrels of West African crude for delivery to China between late June and July, according to industry trading sources. The move signals a significant shift in sourcing strategy for a refiner that had relied heavily on Iranian and Russian crude supplies since late 2024.

For African oil producers, particularly in countries such as Nigeria and Angola, the development highlights growing opportunities to expand market share in Asia as refiners search for stable and non-sanctioned crude supplies.

Sanctions drive supply diversification

Washington sanctioned Hengli Petrochemical in April over allegations that it purchased Iranian oil. The company has denied the claims and said it intends to pursue legal channels to seek removal from the sanctions list.

Although Beijing opposes unilateral sanctions, restrictions imposed by the United States often complicate business relationships by discouraging suppliers, traders and financial institutions from dealing with sanctioned entities.

As a result, Hengli is actively pursuing mainstream crude grades that can move through global trade channels without regulatory concerns.

The company has stated that it maintains sufficient crude inventories to support at least three months of refinery operations and will continue purchasing oil using China’s renminbi.

Why West Africa matters

West Africa has become increasingly attractive to Asian refiners due to its high-quality light sweet crude grades, competitive pricing and reliable export infrastructure.

The region’s producers have also benefited from shifting global trade flows triggered by geopolitical tensions, sanctions and supply disruptions across major energy markets.

Industry analysts say increased Chinese demand could strengthen export revenues for African producers while reinforcing the continent’s strategic role in global energy security.

A global petrochemical giant

Headquartered in Dalian, Hengli Petrochemical operates a 400,000-barrel-per-day integrated refining complex and ranks among China’s largest petrochemical manufacturers. The Fortune Global 500 company is also the world’s leading producer of purified terephthalic acid (PTA), a key raw material used in polyester and synthetic fibers.

Since evolving from a textile manufacturer in 1994 into a fully integrated energy and petrochemicals group, Hengli has expanded across refining, polyester materials, engineering plastics and advanced chemical products, making it a critical player in global industrial supply chains.

As global energy markets adjust to geopolitical pressures, West African crude appears set to play an increasingly important role in meeting China’s refining needs.