By JING YANG
Chinas smaller, independent oil refineries known as
teapots may be granted more import licenses this year, a
government research official said.
The plants may be allowed to import as much as an additional
20 million tpy of crude, or about 400,000 bpd, under the new
quotas, Jiang Xinmin, a deputy director at the Energy
Research Institute of Chinas National Development and
Reform Commission, the top economic planner, said Thursday in
In late 2012, the country first allowed China National
Chemical Corp., or ChemChina, to import as much as 10 million
tpy of crude to supply its teapot plants. China wants to
break the dominance of China Petroleum & Chemical Corp.
and PetroChina, its two biggest refiners, by allowing teapots
to import crude as an alternative feedstock
to fuel oil.
China will further open up its energy import and export
market in an orderly manner, Jiang said. Teapot
refineries that meet the governments requirement for
operation size and environment
regulation may get
crude import quota.
New quotas may be granted to teapots owned by ChemChina as
well as other plants, Jiang said, without elaborating. The
plants also use fuel oil to make gasoline and diesel because
of their limited access to crude.
Crude accounts for 64% of teapots feedstock
, said Ding Shaoheng, an
engineer with China Petroleum & Petrochemical
Institute. The plants, mainly in eastern Chinas
Shandong province, had a combined annual capacity of 164
million tons as of last year, Ding said.