The number, size, level of sophistication and roles played by China’s independent, or so-called “teapot” refineries, are changing. Their evolution is reflected in the relationships between teapots and Middle East crude oil suppliers. In the battle to ensure their profitability and very survival, smaller Chinese teapots have adopted various measures, including sopping up steeply discounted oil from Iran. Meanwhile, Middle East suppliers, notably Saudi Aramco, are seeking to lock in Chinese crude demand while pursuing new opportunities for further investments in integrated downstream projects led by both private and state-owned companies.
Saudi Aramco plans to invest in a major integrated refinery and petrochemical complex in Northeast China through a joint venture, a move that will not only expand its presence but also cope with risk against current energy market volatility.
China is capable of ensuring adequate domestic energy supplies despite rising energy prices and global security concerns, analysts and industry executives said on Wednesday.
China is capable of ensuring adequate domestic energy supplies despite rising energy prices and global security concerns, analysts and industry executives said on Wednesday.