Beijing will allow independent refineries to export refined fuel next year for the first time, sources said, freeing up 20 percent of China’s refining capacity for sales abroad as the government aims to cut a local glut and boost investment.
The move will allow independent refineries, also known as “teapots” such as Dongying Yatong Petrochemical and Panjin Beifang Asphalt Fuel, to enter the lucrative international market for the first time, raising concerns about a fresh flood of excess diesel and other fuels into Asia.
Currently only state-owned refiners, Sinopec Corp and PetroChina and some smaller state oil firms are allowed to sell abroad.
n a rare meeting last week, attended by several provincial trade officials and teapot refinery executives, the Ministry of Commerce told the plants they can now apply for first-quarter fuel export quotas, according to three sources with direct knowledge of the matter.
“It’s an encouraging development as we will be allowed the same playing field as the big firms to export fuel,” said a refinery executive who was at the meeting. Read more