According to Reuters report that Chinese chemical producer Hengli Group has bought its first crude oil cargo from Brazil ahead of the start-up of a new refinery in 4Q18. The 400,000 barrels per day (bpd) refinery in the northeastern port city of Dalian will be one of the five largest refineries in China and a major crude oil buyer. The plant is configured to process medium and heavy crude grades from Saudi Arabia as well as Brazilian oil. To prepare for trial runs at the plant scheduled for October, the company has bought 1 million barrels of spot Marlim crude from Petrobras that arrived in China at the end of May. Hengli would receive its first Saudi crude, 2 million barrels of Arab Medium, in July, with plans to lift Arab heavy crude later. The Ministry of Commerce recently gave Hengli permission to import 5 million tons (36.5 million barrels) of crude oil this year. The Hengli's joint-venture trading office with Chinese state oil firm Sinochem Corp in Singapore was official opening in early June. Hengli OilChem, 80% owned by Hengli and 20% by Sinochem, will procure crude, sell products and petrochemicals and conduct third-party trading.