OREANDA-NEWS.  Rising imports from China could send Los Angeles jet fuel prices lower in 2017.

Regional jet fuel production could also grow as the new owner of a major southern California refinery explores new commercial opportunities.

Chinese jet fuel exports to the US west coast have grown exponentially this year because of strong Chinese production and improved arbitrage opportunities.

Chinese refiners have produced more jet fuel and gasoline to maximize margins, and the US is becoming one of their biggest outlets. PetroChina, one of two main Chinese producers and exporters of jet fuel, said the US overtook Hong Kong this year to become its second-biggest jet fuel destination, behind South Korea.

The trend is likely to continue in 2017. China Aviation Oil, a Singapore-based company that has led imports of Chinese jet fuel to the US west coast, expanded its trading staff recently.

PetroChina is starting its 260,000 b/d Anning, Yunnan refinery next year, which will see exports from the nearby 200,000 b/d Qinzhou, Guangxi refinery rise.

Trafigura moved a jet fuel/gasoline combination cargo from the Qinzhou refinery to New York Harbor in October. PetroChina was heard to be looking for more trading companies to market its products overseas.

Sinopec, China's other main jet fuel exporter, has been upgrading its facilities to produce more jet fuel. In June, Sinopec added a 8,600 b/d jet fuel hydrotreater at its 160,000 b/d Jinan, Shandong refinery. Its 160,000 b/d Changling, Hunan refinery raised its jet fuel production by two third this year compared with last year. Finally, Sinopec's 380,000b/d Jinling, Jiangsu refinery increased jet fuel exports to the US and will remain a frequent exporter.