Shandong Refining & Chemical Energy, China's Fifth Oil Giant?

On September 27, Shandong Refining and Chemical Energy Company was registered in Jinan. Li Xiangping, president of Shandong Dongming Petrochemical Group, will be president of Shandong Refining and Chemical Energy Company. The registered capital of the company is 33.19 billion RMB, jointly funded by 8 companies. Shandong Dongming Petrochemical was the biggest shareholder, with 22.63% of the total share. Blue Economy Zone Industrial Fund (Qingdao) was the second biggest shareholder with 22.59%. Shandong Tianhong Chemical, Shandong Qingyuan Petrochemical, Shandong Shouguang Luqing Petrochemical, Jiangsu Xinhai Petrochemical, Wudi Xinyue Chemical and Shandong Shengxing Chemical took 13.29%, 12.20%, 7.8%, 7.56%, 7.26%, and 6.66% respectively. The operation and management system of the shareholders will not be changed, but the shareholders’ crude oil procurement and refined oil marketing will be conducted by the new company. The independent refineries will be more competitive through cooperation.