China's teapots are filling up
Chinese authorities are giving independent refiners greater freedom to source their own supplies of crude oil
Until recently, China's Hengli Petrochemical was a little-known manufacturer of chemical fibres. But in May, the group, based in the Port of Dalian in northern China, leapt into prominence when the commerce ministry gave it approval to import 400,000 barrels a day of crude oil, the biggest-ever quota for a privately-owned "teapot" refinery. Overnight, the decision made Hengli an important buyer of Saudi Arabian crude oil. The first shipment, reportedly 2m spot barrels of medium crude, was being loaded in June and fed into Hengli's new refinery for trial runs. Clearly, the quota is directly connected to the refinery, which has a capacity of 400,000 b/d and is designed to process Saudi medium
Also in this section
11 February 2026
Panellists from three LNG buyers at LNG2026 in Doha outlined their evolving procurement strategies as they navigate heightened market volatility
11 February 2026
North African producer plans to boost output by early 2030, with Europe its number one priority as export destination
11 February 2026
Maritime leaders at LNG2026 warned of the dangers of over-regulation on competitiveness, sustainability and innovation
10 February 2026
The country has opened bidding on 50 blocks in a new licensing round but will face competition for attention and will need to address concerns about security and legislation
