The Shandong Province authorities (China) have approved a request to establish a refining conglomerate which will bring together the country's largest independent oil refineries, also known as "teapots".
Around 70% of the Chinese "teapots" are located in the Shandong province. They appeared when the Chinese Government started to liberalise its energy sector. Crude oil import quotas and licences were allocated to these refineries starting with Shandong Dongming Petrochemical, which is the biggest "teapot" refinery in the province along with Beifang Asphalt Fuel in the northeastern Liaoning province (China). Shandong Dongming is still China's largest "teapot' with a revenue amounting CYu88.6bn (US$13.5bn) in 2016, out of a combined revenue for all "teapots" reaching CYu492.5bn (US$74bn).
The "teapots" are importing crude oil amounts from the Middle East, latin America, Russia and the US but are facing increasing competition and quotas measures.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.