Beijing is going to allow their independently owned oil refineries, also known as “teapots,” to sell their goods abroad for the first time starting next year.
While it’s not clear how many teapots will apply for permits, traders estimated it could mean an additional 3 million-5 million tonnes (24 million-40 million barrels) of products will be sold abroad next year, in addition to the roughly 30 million tonnes assigned to the country’s state-owned refiners this year.
The combined exports of about 700,000 barrels per day (bpd) would be equivalent to nearly 7 percent of China’s total oil use. – reported by Reuters
700,000 barrels per day. That’s a lot of barrels!
Currently the only major refiners in China, which are state-owned, that are allowed to sell internationally are Sinopec Corp (SHI:NYSE), and PetroChina (PTR:NYSE)
If you enjoy the content at iBankCoin, please follow us on Twitter