China has closed down 59 "teakettle" refineries as of the end of July, representing a combined capacity of about 10 million metric tons/year (200,000 b/d).
All of the shuttered refineries are under the supervision of local governments, outside the control of the country's two petroleum majors, China National Petroleum Corp. and China Petrochemical Corp. Of the total, 10 are in Liaoning province in northeastern China; 11 are in Shandong province in the East; and 12 are in Guangdong province in the South.
China has moved to close this year all the refineries with an annual capacity of 1 million tons/year (20,000 b/d) or less. There are 166 such refineries in China, with a combined total capacity of 30.01 million tons/year (600,200 b/d).
The small refineries are simply equipped, have poor safety standards, and produce low-quality oil products. They can't meet the new benchmarks set by the government in terms of crude supplies, safety, environmental protection, and product quality.
The closure of these refineries has met with opposition from local authorities, which see them as an integral part of the local economy.
