China’s No.1 ‘teapot’ re­finer in crude oil ter­mi­nal ven­ture

New Straits Times - - Business -

Dong­ming Petro­chem­i­cal, China’s largest in­de­pen­dent or “teapot” re­finer, has signed a deal with pri­vately-run CEFC China En­ergy and a lo­cal port author­ity to build a crude oil ter­mi­nal in Shan­dong province, seek­ing to ease a lo­gis­tics bot­tle­neck grip­ping the coun­try’s teapot oil sec­tor.

The 3.9 bil­lion yuan (RM2.52 bil­lion) project with con­glom­er­ate CEFC China En­ergy and Rizhao port au­thor­i­ties comes as China’s teapot re­fin­ers emerge as a cat­a­lyst in the global oil mar­ket, ramp­ing up Rus­sian and US im­ports in fren­zied buy­ing that has led to tanker queues and scarce stor­age space.

Ex­ec­u­tives at Dong­ming, for­mally known as Shan­dong Dong­ming Petro­chem­i­cal Group, and pri­vate firm CEFC said yes­ter­day that pub­licly-owned Rizhao Port Au­thor­i­ties would take 51 per cent of the project, CEFC 25 per cent and Dong­ming 24 per cent.

Plans in­clude a 300,000 dead­weight ton­nage (DWT) crude ter­mi­nal, two 150,000-DWT crude berths and a 9.8 mil­lion-bar­rel stor­age farm.

“With Qing­dao port nearly sat­u­rated, Rizhao stands out with its ideal lo­ca­tion, with easy ac­cess to teapots to the north and close also to Lianyun­gang, one of China’s planned fu­ture petro­chem­i­cal hubs to the south,” said a CEFC ex­ec­u­tive.

CEFC has in­ter­ests span­ning fi­nance and travel as well as oil.

Qing­dao port is the coun­try’s largest oil port by vol­ume, ac­count­ing for 27 per cent of China’s to­tal crude oil im­ports last year.

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