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