Chinese Chemical Giant Gets Largest-Ever Oil Import Quota
Chinese Chemical Giant Gets Largest-Ever Oil Import Quota

Chinese Chemical Giant Gets Largest-Ever Oil Import Quota

Chinese Chemical Giant Gets Largest-Ever Oil Import Quota

Hengli Petrochemical, a unit of private Chinese chemical giant Hengli Group, has obtained state approval to import 400,000 bpd of crude oil—the largest quota ever handed to a private Chinese refiner, as it aims to start a new refinery this year, challenging the smaller independent Chinese refiners.
In a stock exchange filing, Hengli Petrochemical said the Chinese state economic planner, the National Development and Reform Commission, had approved the import quota, Oil Price reported.  Hengli Petrochemical has plans to begin this October trial runs at a new refinery on the northeastern port city of Dalian, which will be one of the five biggest Chinese refineries.
 “We hope to get enough allowances for the refinery to start trial operations in October,” a senior Hengli official told Reuters on the condition of anonymity. The Dalian refinery’s two crude distillation units are designed to process 30% of Saudi Arabia’s Arab Medium crude, 60% of Saudi Heavy and 10% Qatar Marine, according to the official.
“Hengli’s world-class scale, sophisticated refinery configuration that favors high-end petrochemicals and its location means it will be a killer competitor to 'teapots',” Harry Liu of consultancy IHS Markit told Reuters.
The new big refinery will be stiff competition for the small independent refiners—known as teapots—that typically operate refineries with capacities of below 100,000 bpd. Liu expects some of the teapots could close over the next two years as a result of the competition from the larger refineries of private chemical groups. According to Reuters, Zhejiang Ronsheng Group, another privately held chemical company, is set to operate a newly-built 400,000-bpd refinery in the eastern city of Zhoushan in 2018.


Short URL : https://goo.gl/R3qatk
  1. https://goo.gl/D99cjA
  • https://goo.gl/xHVcB5
  • https://goo.gl/7YBWPP
  • https://goo.gl/yGn18d
  • https://goo.gl/dmBU8E

You can also read ...

Shell in Talks to Sell $2b Worth of Nigeria Assets
Royal Dutch Shell Plc is in talks to sell two Nigerian oil...
Germany Suggests India Continue Iran Oil Imports
Speaking to Indian TV, Germany voiced hope that India would...
Japan Will Face Higher Gasoline Prices After Halting Iranian Crude Purchase
Japan’s major oil distributors are considering halting oil...
Argentina to Export Natural Gas to Chile
Argentina will begin exporting natural gas to Chile from...
Egypt Hikes Gas Price by 75%
Egypt said on Saturday it was raising the price of natural gas...
Cheap Fossil Fuels Hinder Renewables Development
The key factor hindering renewable energy development in Iran...
NIDC Indigenizes  Eco-Friendly Well Test Burner
The National Iranian Drilling Company's experts have designed...

Add new comment

Read our comment policy before posting your viewpoints