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PrintChina plans to eliminate low-efficiency and poor-quality oil refining facilities of an annual refining capacity of one million tons and below by 2010, said the National Development and Reform Commission, China's top economic planner, on May 3.
NDRC has formulated a new plan on eliminating backward production capacity as a key effort to boost the economy and adjust the industrial structure.
According to the new plan, all refining facilities with an annual crude oil throughput ranging from one million tons to two million tons will be closed down, halted, merged or transformed for other purposes.
NDRC stated that the government will say no to any launch of new refining projects in the name of asphalt and heavy oil processing.
At present, most small oil refining facilities in China are independent refineries, so called teapot refineries. According to C1 Energy, a Chinese energy information portal website, these teapot refineries have an annual crude oil processing capacity totaling 88 million tons, or 1.8 million tons.
Among them, only eight refineries each has an annual crude processing capacity of above two million tons and their combined capacity amount to 26.7 million tons.
China's oil giants including PetroChina and Sinopec also possess small refineries of capacity below two million tons, but the capacity aggregate is not known.
(www.chinamining.org)
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