Today's Topics
Shandong Independent Refineries to Strengthen Cooperation Further
Qingdao Port to Build Crude Oil Storage Tank Zone with PetroChina
China Issued Regulation Basis of Crude Oil Refining and Import
Shandong Independent Refineries to Strengthen Cooperation Further
On September 1, Shandong Economic and Information Technology Committee announced to allow Shandong independent refineries to jointly build Shandong Oil Refining and Chemical Energy Group (transient name). The new company will be built by major independent refineries in Shandong Province, including Shandong Dongming Petrochemical and Shandong Qingyuan Group.
China’s independent refineries are enjoying opportunities at present, due to China’s oil industry reform. But some big problems cannot be neglected at independent refineries, especially the refineries in Shandong Province. Accordingly, Beijing put a brake on independent refineries’ application for crude-import quotas in May, and the independent refineries are not allowed to export gasoline and diesel. These limitations don’t show China doesn’t support the development of independent refineries. Instead, the government is encouraging independent refineries to become large-scale and to integrate the upstream and downstream. Only in this way can China’s independent refineries be more competitive when they participate in the international business.
Details of the operation of the new company are not clear at present. But there is no doubt that the new company will take advantages of its founders and the development of the new company will be supported by the government.
Qingdao Port to Build Crude Oil Storage Tank Zone with PetroChina
Qingdao Port International Company signed the letter of intent for the cooperation with PetroChina Fuel Oil Company. The two companies plan to jointly set up a company at Dongjiakou of Qingdao Port for the storage, stevedoring and transfer of crude oil, fuel oil and wax oil, will build 600,000 m3 oil storage capacity at Qingdao Port. Dongjiakou will the crude oil storage capacity of 3.46 million m3, if the project is finished. According to SCI, Qingdao Port International Company now has the storage capacity of 400,000 m3 at Dongjiakou. In addition, the oil storage capacity of Qingdao Haiye Mercuria oil tank zone is 2.46 million m3 which has been put into operation since August of 2016.
China Issued Regulation Basis of Crude Oil Refining and Import
On August 28, China issued a new memo on the regulation of oil and natural gas enterprises, which confirms some law basis of the regulation of crude oil exploration enterprises, natural gas enterprises, crude oil refining and storage enterprises. The enterprises which violate regulations will not be allowed to refine imported crude oil, or not be allowed to export refined oil. The related enterprises shall not apply for crude import quotas. This is the first time that China issued clear regulation basis after independent refineries were allowed to refined imported crude oil. The independent refineries will be more cautious about refining and importing crude oil.
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