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China allows local refineries to use imported crude after eliminating outdated

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2015-02-17 GMT+8:00

BEIJING, Feb. 16 (Xinhua) -- China's National Development and Reform Commission (NDRC) announced on Monday that it would allow qualified local refineries to use imported crude oil after they phase out outdated production capacity or build oil storage facilities.

"It means that China has made a substantial step in solving local refining enterprises' crude oil supply problem," said Dong Xiucheng, a senior researcher with China University of Petroleum. Diversification of oil resources is the precondition to form sufficient competition on the petroleum market, he added.

In recent years, some local refineries built new projects and expanded refining plants without approval from the government. As part of the newly built and expansion projects belonged to lagged production capacity, they severely affected structure of China's oil refining industry. These refining plants had been unable to obtain guarantee of crude oil resources due to their illegal construction.  (Edited by Liu Xiaoyun, liuxy08@xinhua.org)

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