Three crude tankers have begun shipping out Iranian crude stranded in Chinese storage for six years.
Market sources told oil analytics company Kpler that two VLCCs and an aframax have loaded crude at Dalian Changxing Oil Terminal.
The 319,200-dwt Madestar (built 2005) is said to be carrying 2m barrels, according to the Wall Street Journal (WSJ).
The ship, formerly the Madesta, is listed by the Equasis database as having been sold to undisclosed interests in December.
And the 103,600-dwt aframax CH Billion (built 2004) has loaded 700,000 barrels in Dalian and remained at anchor off the coast on Tuesday, with its destination listed as “for order”.
This vessel is listed as controlled by Young Folks International Shipping of Hong Kong, which could not be contacted.
Another VLCC, the 318,700-dwt Star Forest (built 2003), is also reported to have loaded barrels.
AIS data showed both VLCCs were underway off China on Tuesday, heading south-west, with destinations also listed as “for order”.
The Star Forest is operated by Lucky Ocean Shipping of China, which could not be contacted.
Kpler said the sellers of 25m barrels of Iranian oil worth $2bn are prioritising their movement out of Dalian to generate cash flow needed to cover the high storage fees at the terminal, which they have allegedly been using since 2018.
“Once they have cash flow, they can pay the storage fees to move out the remaining cargoes,” Kpler added.
Reuters reported that Iran must pay $450m in storage fees to Chinese oil storage facilities to release the barrels. The WSJ put this at $1bn, however.
The full amount is the equivalent of 25 suezmax cargoes.
The WSJ said Iran had begun shipping this oil two weeks ago with Chinese approval.
The oil was imported by China before 2019 as a precaution when Trump imposed sanctions on Iran’s exports but granted China temporary waivers.
These waivers were then revoked and the crude was left unsold and stranded.
The WSJ said that if a Chinese buyer wanted the oil, it must first leave China’s waters and then re-enter with documents disguising its origin.
