As per the new plan, all refining facilities with an annual crude oil throughput ranging from one million tons to two million tons will be shut down, halted, merged or transformed for other purposes.
NDRC said that the government of China will say no to any open of new refining projects in the name of asphalt and heavy oil processing.
Currently, most small oil refining facilities in China are independent refineries, so called teapot refineries. As per the C1 Energy, 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 have an annual crude processing capacity of above two million tons and their combined capacity amount to 26.7 million tons.
PetroChina and Sinopec also possess small refineries of capacity below two million tons, but the capacity aggregate is not known.
