China to allow small refiners to export

China

BEIJING, November 24, 2015 – China will grant permission for its independent refining companies to export fuel abroad in 2016, industry sources have told Reuters.

State-owned giants Sinopec and PetroChina, together with some smaller government-owned companies, are at present the only businesses allowed to engage in petroleum product exports.

The country’s “teapot” refineries, such as Panjin Beifang Asphalt Fuel and Dongying Yatong Petrochemical, will next year be able to enter international markets.

The news raises concerns about compounding the current global supply glut.

With the move, Beijing aims to allow 20 percent of national refining capacity to be directed towards exports.

Earlier this year, the government raised the major refiners’ quotas for exports of petrol, diesel and jet fuel.